Tuesday, August 23, 2011

RBI must try to keep issuing of bank licenses free from controversy

Considering the 2G scam, the Reserve Bank of India must adopt a prudent approach towards issuing of banking licenses, the umbrella banking body must take relevant steps to avoid issuing of bank licenses to create any such controversy.

The banking licenses are as valuable as the telecom licenses were and hence it is very much necessary for RBI to keep the proceeding as transparent as possible. RBI must make the entire eligible group to bid for the banking licenses and thus RBI would be able to make optimum utilization of the resources.

RBI should issue very limited number of licenses and then can invite application for the next bidding after a certain period of time.

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