There are some banks (Like PLDB) which are deceased due to lack of funds, very less recovery rates and lack of skills. More than everything there is politics involved in these banks. RBI should concentrate on development of these banks insteading of increasing number of banks. Developing banks like these will provide primary support to agriculture and rural employment.
yes we need bigger Banks The credit portfolio having centralised Districtwise with processing monitoring back offices .Credit experts should be posted in centralised hubs and large number of collecting distributing and loan inspecting units should be opened through out the District . Controll should be from District Centralised Office only
Big country needs a few big banks with good control on its function without much external interference, particularly from political touts. Strong workable regulatory control by RBI should be binding to meet the basic business rules with any changed initiatives by bank as and when required in our emerging economy.
Multiple banks already playing since Nationalization of Bank have already suffered a lot and some of them have been merged with other big banks purely because of of its non-viability both from economical and commercial perspective. New generation private sector banks look nice in ambiance but they do hardly function with basic banking as envisaged in fare banking practice.Their role in financial field is also restricted to selected segment of customers who belong to `demand category` and banks often become victim to meet their `demand`. Regulator has little control on such activities. Such activities however sometimes allow the bank to make money to improve their profitability at the cost of national interest.Their performance parameters meet a small space in economy.
The concept of Financial Inclusion to make rural people financially literate can hardly be achieved through new NOFHC as limited scale of basic banking at unbanked area with population upto 9999 is purely a fantasy. Outreach by existing banks can serve the purpose to a greater extant where extra cash-flow of rural people can be channelized to existing banks to create more accretion of assets to rural people with core financial discipline without any political red eyes.
Money Laundering activities, a menace to financial corruption with potential risks to security of nation, will find a more vibrant financial channel to operate under multiple private sector bank.
Hence license to new private banks where existing banks already suffering from viruses from political economy do not expect to contribute any extra-ordinary value addition within the same economic platform unless Govt cleanses all maladies linked to financial discipline and customers` literacy to uphold fair banking practice by all stakeholders.
Changes are always a welcome step but judgmental steps should not be relegated to the background in the name of radical thinking in a financial sector which occupies a pivotal role in national economy.
whether govt and RBI taking gaurantee of new licence holder if permitted.Many co operaiv banks lapse and public lost their deposits.Who is responsible and how they had been allowed to run bank and what watch RBI made.