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Is there a case to issue new banking licences to Corporates?

RBI has received 26 applications from Corporates for new banking licences.But is it desirable to allow India Inc in banking as it sets the stage for potential conflict of interest. Or should RBI strengthen guidelines to ensure rural penetration is achieved by the vibrant mix of present PSU and private banks.Will this result in the new players battling for the same urban market where banking has reached a saturation. We would love to hear your views.

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