Cartels, entry barriers & limited players spoil Indian banking: CCI | FE

FE reports:

According to government sources, in a presentation made suo motu to three deputy governors of the central bank recently, the CCI pointed out that during the last 10 years, the RBI had given licences to only two private banks - Yes Bank in May 2004 and Kotak Mahindra Bank in February 2003. During the same period, however, other sub-sectors like insurance and mutual funds had seen 24 and 14 new players, respectively.........

Strict licensing norms for branches and automated teller machines and restrictions on locations had created high entry barriers, the CCI pointed out. Further, it hinted at banks working as a cartel under the Indian Banks’ Association banner in setting interest rates for savings account deposits at 3.5%.