Context: An Internal Working Group (IWG) of the RBI has recently made a far-reaching recommendation to permit industrial houses to own and control banks.
Benefits of the move: the main benefit is that industry-owned banks would increase the supply of credit, which is low and growing slowly.
Reasons for not allowing Industry owned Banks :
Way Forward:
Conclusion: Policymakers should not mix Industry and finance as it will set us on the road full of dangers for growth, public finances and the future of the country itself.