Although many non-banking financial institutions and financial institutions are today strong private banks, it is time the Reserve Bank of India opened the banking sector to corporations as well. The need of the hour is not the number of banks — but their size. Apart from India, all other BRICS (Brazil, Russia, India, China and South Africa) countries have one or more banks in the world’s top 50 list. The central bank should issue licences to corporations that show potential. The risk of default is also lessened owing to the fact that real estate broking firms and stock brokers cannot apply. Moreover, there is a cap on foreign investment.
Bhushan Orpe Thane
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