RBI IWG Report: Assumptions As Tenuous As Recommendations?
The recent report by Internal Working Group (IWG) of RBI has made recommendations that run contrary to the practice followed in internationally, especially the recommendation to would allow industrial groups to own banks. Predictably, the report has been controversial. However, lost in the noise is a set of implicit assumptions that the IWG seems to have made, that further weaken its contentions. Nishikant Das assesses these assumptions.