Chennai, Nov 25 (TIWN) The Communist Party of India (CPI) on Tuesday opposed the recommendations of Reserve Bank of India's (RBI) working group to issue banking licence to industrial/business houses and conversion of large finance companies into banks.

“It should be recalled here that at the time of Independence of our country, all the banks in India were owned by business houses but none of them came forward to help the government in its planned economic development projects,” General Secretary D.Raja said in a statement.  “On the other hand, these private banks were mobilising savings of the people and cornered the same for their own business/vested interests. Because of this, many banks ran into problems and suffered from issues like conflict of interest,” he added.  “Further, every now and then, we hear the crisis in private banks.