The Parliamentary Standing Committee on Finance headed by Shri Yeshwant Sinha has strongly opposed the proposal of the Government to grant bank licence to the Industrial and corporate houses. The latter have been pressing the government for bank licences and the govt. has conceded their demand.
The Parliamentary Standing Committee has warned that if such licences are given, the situation that existed before the nationalisation of banks may return. The Committee pointed out that there is no situation for a pre-nationalisation period being restored.
The government should accept the recommendation of the Standing Committee and discard its proposal for granting bank licence to industrial houses.