Country’s leading financial newspaper The Economic Times published a startling revelation on the impending tyranny of Global Financial Consortiums, though moderated in its headline. The concern came from a senior market observer and the CEO of a dependable research firm Value Research. The core of Dhirendra Kumar’s contention is related to the opening of the proposed India Post’s Payment Bank to offer 3rd party Insurance & Banking Products backed by some 50 international consortiums including Barclays and others which shall create a huge matrix.
As per Kumar, this enthusiasm on the part of the Minister is understandable as we tend to take it for granted that the injection of private and foreign expertise is generally a good thing for the market for any kind of product and its customers. Kumar asks as whether this is true in financial products as well. He claims that banks have used the blind confidence that customers have in them to push products that have earned them the maximum commissions while emptying customer’s pockets which IRDA and RBI have been unable to curb.