Is he a fit and proper person to run a bank? This is literally the billion rupee question that former RBI Governor Bimal Jalan and his colleagues on the committee to recommend new banking licences must face as they struggle through the numerous applications to open banks. A scion of India’s biggest business house was unbelievably frank. Says he, “Give me a banking licence and my group’s debt will come down by Rs 15,000 crore.” Reeling, as he is reported to be, in a mountain of debt, it’s easy to understand his desperation, to the point that he doesn’t realise the import of his utterance.
OBJECTIVES VS MOTIVES
The objectives of licensing new private banks haven’t gone beyond the generality of hoping they make banking more ‘inclusive’. But objectives are vastly different from motives — the former are for public consumption while the latter is the hidden reality. To hope all private banks with their profit, or worse, private agendas, to drive ‘inclusive banking’ is a joke. And one’s certain a man of Jalan’s experience knows this only too well. Still, he has a mandate to be fulfilled as best as he can.
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