The proposal of the UPA-II government to give bank licences to the corporates and big business has been opposed not only by the bank employees, but others also, who are connected with the bank industry. They know that what happened earlier when the private banks were operating. It neither helped the people nor did they grow. In fact the people were cheated. That is why the government at that time nationalised them. Despite that position 12 private banks were set up after 1993, as part of the neo-liberailsation policy. But, as per reports, except one bank, all others have disappeared. At the same time it is the growth and functioning of the Nationalised banks that the global recession did not hit India in the same harsh way it did US and Euro countries.

Now, the Parliament Standing Committee on Finance, to which the matter was referred to by the Parliament has unanimously demanded the government to drop the ill-advised proposal to grant licences to the Industrial and corporate houses. It is interesting that Rahul Gandhi, Congress Vice-President is one of the members of the panel and that the report was unanimous.

It is better for the government to drop the proposal of starting such new banks. It is not in the interest of the nation.