Banking regulations don’t allow easy entry and, therefore, much competition. And any business that is protected against competitive forces turns anti-consumer. A media report has mentioned that banks have collected Rs 50 billion as penalties from depositors. Banks have a great time imposing excessive and arbitrary charges, penalties, non-financial restrictions and mis-selling products, which fetch them commissions and inflict losses on consumers. It offers a real-life example of Raghuram Rajan’s classic insight: Very often it is the incumbent capitalists who find ways to defeat capitalism (the central theme of his 2003 co-authored book Saving Capitalism from Capitalists).
Now, academics rarely manage
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