Parl panel against corporates getting bank licences

A parliamentary panel has opposed the new bank licences to corporate houses and voiced concerns over the discretionary power vested with RBI for applying ‘fit and proper’ criteria for deciding on applications. The Parliamentary Standing Committee on Finance, headed by former finance minister and BJP leader Yashwant Sinha, finalised its report on the new bank licences at its meeting here on Friday. According to sources, most of the members opposed the bank licences going to corporate houses and the same concerns have been reflected in the report which will be submitted to Lok Sabha Speaker Meira Kumar soon. The members felt that since there is no such practice to give bank licences to corporate houses anywhere in the world, India should not be an exception. The members also objected the fit and proper criteria.