Why a Banking Commission

EVEN after fifteen years of planning, Government still tends to formulate policies in terms of an unplanned economy. Yet another instance of this is the Finance Minister's anxiety to appoint a commission to examine the working of the commercial banking system when what is really necessary is a commission to study the efficiency of the entire structure of financial institutions from the point of view of planned economic development. As for banks, the Reserve Bank is in possession of all the data and is in a position to review the functioning of the banking system far more comprehensively than any commission can, On the other hand, the questions that a commission, if it is to serve a useful purpose, should examine are; a) are short-term and long-term credit policies properly co-ordinated?