The New Bank Licencing Policy which allows private, industrial and business corporates to start their own banks is disastrous to say the least. The private companies with even a minimum of Rs. 500 crores can start a bank! Through this, corporates will be able to manipulate their finances and cleverly cheat on taxes etc. Further this will become a big haven for corruption.
It is to be remembered that the private banks were nationalised earlier to ensure better governance, responsibility and credibility. The present move which is to please the corporates is disastrous and should be dropped. The Bank Employees Unions are already on agitational path on this.