Centre should reject RBI's panel recommendation on allowing corporates to launch pvt banks: LJD

Thiruvananthapuram, Nov 26 (PTI): The Union government should reject the Reserve Bank's internal committee's recommendation to allow industrialists and corporates to launch private sector banks in the country, Dr Varughese George, national general secretary of Loktantrik Janata Dal (LJD), said on Thursday. All democratic and progressive forces should come together to oppose this recommendation, he said.PTI UD SS PTI PTI

The Union government should reject the Reserve Bank's internal committee's recommendation to allow industrialists and corporates to launch private sector banks in the country, Dr Varughese George, national general secretary of Loktantrik Janata Dal (LJD), said on Thursday. "The RBI seems to have not learnt lessons from the huge scams that happened in the past one decade. Many public sector banks had to agree to take over the liabilities of several private sector banks that did not become operational due to mismanagement", he said in a statement here.

The country survived the recession in 2009 and 2012 due to the existence of public sector banks and the United Nations had acknowledged it since then. All democratic and progressive forces should come together to oppose this recommendation, he said.