Connected lending: Das & Co gets serious about a bank system that Raghuram Rajan had warned
Reserve Bank of India MPC meet Updates: India restricts corporate houses from owning banks, raising questions about their absence despite financial capabilities. Allowing them could foster 'connected lending,' granting preferential loans to connected parties. While a 2020 RBI proposal advocated their entry, criticism centered on consolidating economic and political power.
Source: indiatimes.com