Congress welcomes economic experts' criticism of central govt's proposal to allow corporates in banking sector
Nov 24, 2020
New Delhi [India], November 24 : The Congress party welcomed the statement of Dr Raghuram Rajan and Dr Viral Acharya stoutly opposing the proposal of the BJP government to allow corporates and business houses to enter the banking sector and establish banks, in a media briefing on Tuesday.
"It is on record that the idea, when first mooted, was opposed by all. Dr Rajan and Dr Acharya have given cogent and convincing reasons why the idea is totally retrograde and why it will lead to the concentration of economic and political power in India," an official statement from Congress stated.
The media briefing, led by P Chidambaram, said that BJP's proposal, ostensibly based on a report of an RBI Internal Working Group (IWG) had fingerprints of the Modi government written all over it.
"This proposal, along with some other recommendations, is part of a deeper game plan to control the banking industry. The proposal, if implemented, will completely reverse the enormous gains made in the last 50 years of retrieving the banking sector from the clutches of business houses," the official statement read.
Congress further stated that 'just as RBI was the cat's paw of the government' during demonetisation, it is being used by the government again to push through its 'dangerous agenda'.
"This is another example of the Modi government pandering to the aggrandizement and acquisitive ambitions of the business houses of India. If the proposal goes through, it is no secret which politically connected business houses will get the first licences and increase their monopolistic power," it said.
The Congress strictly condemned the proposal and demanded that the government, unequivocally and forthwith, declare that it has no intention of pursuing it further.
"We call upon all the people of India and all political parties and trade unions to join us in resolutely opposing the retrograde idea of allowing corporates and business houses to enter the banking sector and set up banks," it concluded.
