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Even as 26 applicants wait with a hope to get a banking licence, Reserve Bank of India (RBI) governor D Subbarao said that the decision to allow corporates to apply for new licences was taken after much debate.
"We debated extensively on the matter and the decision to allow corporates to apply for bank licences was done in the national interest," Subbarao said. "As Indian banks go out and open branches abroad and foreign banks come and set up operations inside the country, there is no way we cannot implement Basel III," the governor said on the need to implement global norms.
The RBI had asked banks to implement Basel III norms from the first of April this year. On the policy front, the focus of the monetary policy of the last three years was one of management post crisis.
"We now have to learn to manage policy in a globalized world. In the last five years, the world has gone through a financial crisis which has hit every country. This has shown the ferocious power of globalization," he said.
He said there is a debate around the world on the accountability and responsibility of central banks. "At RBI, we jealously guard and protect out our autonomy. But we can't demand autonomy unless we are accountable. I have suggested that the RBI governor can render accountability to a select committee from Parliament. And until then, we should render it voluntarily," he said.
Source: TimesOfIndia
"We debated extensively on the matter and the decision to allow corporates to apply for bank licences was done in the national interest," Subbarao said. "As Indian banks go out and open branches abroad and foreign banks come and set up operations inside the country, there is no way we cannot implement Basel III," the governor said on the need to implement global norms.
The RBI had asked banks to implement Basel III norms from the first of April this year. On the policy front, the focus of the monetary policy of the last three years was one of management post crisis.
"We now have to learn to manage policy in a globalized world. In the last five years, the world has gone through a financial crisis which has hit every country. This has shown the ferocious power of globalization," he said.
He said there is a debate around the world on the accountability and responsibility of central banks. "At RBI, we jealously guard and protect out our autonomy. But we can't demand autonomy unless we are accountable. I have suggested that the RBI governor can render accountability to a select committee from Parliament. And until then, we should render it voluntarily," he said.
Source: TimesOfIndia
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