However, the following is a kind of wish-list:

Advances to corporates against shares of group companies (promoters' quota): The existing scheme needs to be thoroughly overhauled and liberalised. At present, the central bank permits commercial banks to grant such loans only for the purpose of investment in new projects and the quantum of loan for any bank as a whole is restricted to 5 per cent of the incremental deposits of the previous year prescribed for investment in shares/convertible debentures of public sector undertakings, corporate bodies, units of mutual funds, etc. Corporates are the pilot engines for industrial and economic growth. In a growth-oriented atmosphere, this kind of restriction on sourcing of finance is unwelcome. Commercial banks should be allowed to determine the quantum, purpose and other terms of such loans to corporates within the overall prudential norms of RBI.

Advances against intellectual property rights for media and broadcasting companies: The world is fast moving away from brick and mortar economy and so are we. It is time for RBI to advise commercial banks and financial institutions that old mindset of advancing money only against physical assets has to be jettisoned and new approach for funding for e-commerce and Internet activities has to be developed.

When IT sector was coming up, RBI did frame guidelines for banks' advances to this sector. Likewise they should now issue suitable advice to the banking sector for financial support to media, broadcasting, e-commerce and Internet companies against their rights over intellectual properties.

Loans against acquisition: Acquisition is no longer a dirty word. Acquisition may benefit the acquirer as well as the acquired or both. This may be for diversification, synergy or tax planning. But at times funds become a constraint in the way of a desirable acquisition.