Discuss foreign banks reforms first, says BJP

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SummaryThe BJP spokesperson, outlined the experience of foreign banks to caution against importing financial crisis.

Taking objection to RBI chief Raghuram Rajan making a policy announcement regarding reforms in the banking sector for foreign banks, the BJP on Monday demanded a national debate on the issue before proceeding further.

“The announcement by RBI Governor Raghuram Rajan about a certain reform in banking sector in Washington is a major policy announcement. The BJP expects that such major policy change must first be discussed in the country,” BJP spokesperson Prakash Javadekar said expressing concern over reports of Rajan “contemplating allowing foreign banks to take over small Indian banks”.

The BJP spokesperson, in this context, outlined the experience of foreign banks to caution against importing financial crisis through proposed reforms.

“The experience of foreign banks in India is that they only compete with Indian banks in creamy business segments. Their contribution, as far as financial inclusion is concerned, is minimal and below expectations,” Javadekar said, stressing, “Such a major announcement should have been first debated here taking into account the global experience.”

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