The vexatious issue of connected lending - The Hindu BusinessLine thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
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.