Corporate-Run Bank: Former RBI Governor D. Subbarao’s Take | India Revival Mission

Reserve Bank Of India's Internal Working Group proposal to allow large corporate and industrial houses to promote and run banks in India, has set the proverbial cat among the pigeons. Several eminent economists including former RBI Governor Raghuram Rajan, RBI Deputy Governor Viral Acharya, and former Chief Economic Advisors have criticised the proposal. However, a similar proposal was made in 2013 as well which did not see such an outcry. So, what has changed in the last 7 years? Talking to ET NOW, former RBI Governor D Subbarao said the perception of the general public towards banks has seen a paradigm shift in the light of fraud in Punjab National Bank and issues at YES Bank, Lakshmi Vilas Bank, and Punjab and Maharashtra Co-operative Bank. He stressed that public confidence that deposits in banks will be safe is at an all-time low and there are concerns that corporate entry into banks in the current culture will lead to 'connected lending'. Listen in to an excerpt of that exclusive conversation with ET NOW's Consulting Editor Mythili Bhusnurmath. Subscribe To ET Now For Latest Updates On Stocks, Business, Trading | ► https://goo.gl/SEjvK3 Subscribe Now To Our Network Channels :- Times Now : http://goo.gl/U9ibPb The NewsHour Debate : http://goo.gl/LfNgFF To Stay Updated Download the Times Now App :- Android Google Play : https://goo.gl/zJhWjC Apple App Store : https://goo.gl/d7QBQZ Social Media Links :- Twitter - http://goo.gl/hA0vDt Facebook - http://goo.gl/5Lr4mC G+ - http://goo.gl/hYxrmj Website - www.etnownews.com