The CPI on Tuesday urged the RBI to reject the application of banking licence of Aditya Birla group, alleging clash of interest. The central secretariat of the CPI said that as the group chairman Kumar Mangalam Birla was a member of the Board of Reserve Bank of India, consideration of the application of Aditya Birla group was clearly amounting to clash of interest and serious violations.
“Among the 26 applicants, there is also an application submitted by Adiyta Birla Nuvo seeking a new banking licence belonging to Aditya Birla group under the Chairmanship of Kumar Mangalam Birla.
“KM Birla has been a member of the Board of Reserve Bank of India for the past six years. Considering his privilege membership he as a board member had access to the mutation and discussions on all issues related to new banking licence in the RBI in his tenure. This is a serious conflict of interest where a Board member of RBI is also one of the applicants for a bank,” said CPI in a statement. The party also demanded the Government for removal of Birla from the Board of RBI.
“CPI expresses a deep concern on the conflict of interest of the position of KM Birla at such an early stage of consideration of new banking licences. It draws the attention of the government for serious consideration of the validity of the banking application of Aditya Birla Nuvo and replacement of KM Birla as a consequence there of from the board of RBI. It is also necessary for the Government of India and the Reserve Bank to reconsider issuing licences to private sector instead of expanding the public sector banks which are doing excellent job,” said CPI.