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New Licences: AIBEA Resents RBI Decision

Published: 08th April 2014 06:00 AM  |   Last Updated: 08th April 2014 01:42 AM   |  A+A-

The All India Bank Employees Association (AIBEA) raised objections to the Reserve Bank of India’s (RBI) decision over issuing of new banking licences.

AIBEA is expected to meet on April, 19 to determine the next course of action.

“It is a matter of concern that despite protests, the Election Commission has given its approval to the RBI to go ahead with the process of new bank licences and immediately the RBI has already given in principle permission to two companies to start their own private banks,” said C H Venkatachalam, general secretary, AIBEA.

It may be noted that RBI granted approval of licences for IDFC Ltd and Bandhan Financial Services early this month.

“It is strange that even though the Standing Committee on Finance consisting of all major political parties has unanimously given its recommendations against the banking licenses at this juncture, the RBI is going ahead in their anxiety to appease the corporates. What our country needs strengthening of public sector Banks and not opening up banking sector to private players whose tract record is also not appreciable,” he said Venkatachalam.

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