“Corporate Banks will allow India to Reach USD 5 Trillion Dreams Faster”. Mr.Rajan’s and Mr.Acharya’s views are mistaken.

 25^th November 2020

“Corporate Banks will allow India to Reach USD 5 Trillion Dreams Faster”. Mr.Rajan’s and Mr.Acharya’s views are mistaken.

Dear Fellow Travelers,

Namaste! Can you see the speed at which Government is bringing reforms in various areas? They are committed to taking India to the USD 5 Trillion Economy. Recently they have allowed corporates to start their own banks subject to certain conditions. Mr.Rajan and Mr. Acharya both are very respected for their in-depth banking and economic knowledge. What’s more, they have actual experience also. So, when they say it’s a “Bombshell”– they have their views.

As an investor, I know how human psychology works in practice. Ultimately, banking or any other activity is nothing but Human Mind working in practice. I am sharing how in practice corporate banks will work.

Availability of On Tap Funds at low cost: -

We have seen the Harshad Mehta scam web series recently. He used to pay money to bank guys and other officials over and above interest to use their money. He was sponsoring Mundan Vidhi expenses and the person used to go in flight and stay in 5-star hotels. He was incurring huge additional costs for the favour to use the bank’s fund.

Now assume if he had his own banks – will he incur additional cost? Will have to beg the manager of the banks?

If he had banks – he would have to just call the CEO and things would have been done. He would have got low-cost funds on tap. He could have followed the Japanese Management Concept of “Just in Time Funds” had he owned a bank.

Our Entrepreneurs would not have to Run Away from the country: -

Look at the loss we have had in terms of losing our entrepreneurs to other countries because they could not pay to the banks. If they had borrowed from their own banks – would they run away? With their creativity, they were adding to the GDP of India and paying huge taxes. What a loss to India?

So, Corporate banks is a step to keep our entrepreneurs in India only.

No Legal Cost: -

When Borrowers do not pay – banks take legal action. It means they are incurring the legal cost. Borrowers also spend a huge amount behind lawyers to save their skin from the legal machinery. This is happening because Banks and Borrowers are two different entities. With the new laws – Banks and Borrowers both would be the same entity. So, they will save a lot of money on legal costs.

No Political Donations: -

Many times, big borrowers have to take the support of the political leaders to get approval for a big loan. In return, the borrower has to look after the leader’s interest in cash or kind. With their own banks and funds on tap – they will not need any political favour and no favour means no cost.

Strong Banking system: -

Today we are seeing NPA issues because borrowers and banks are not the same. When borrowers and banks are the same – there is no NPA, technically.

Moreover, if the CHOR is CHOKIDAR then other CHORS will be alert when dealing with CHOR’s banks. Since they know each other’s modus operandi in detail, the Banks will be alert in giving loans to other Borrowers who are not owning banks.

What is China’s Experience?

I am sure you would have read or heard in Media that the Chinese Government can destroy any town and construct something else. Time and again they have constructed new cities and destroyed them as per their new needs.

Now their banks have huge NPAs technically. Because the construction of the towers was done with a loan and now towers are destroyed, banks have lost all their money.

Since the government is owning the banks – they are managing them with huge NPAs. Have you heard any big Chinese banks have closed down?

With the Corporate ownership of the banks – companies will be able to focus on the business without worrying about the NPAs. So, India will also progress fast like China.

How the economy will get a boost?

It is an open secret that our black money is stored in Swiss banks or other tax heavens. Many politicians and industrialist have their accounts over there. They have to do this as they have trust issues on our banks and tax issues with the laws of the land. If they have their own banks – these black monies will become official and it will be a huge amount in the banking system. We will not have to borrow from World Banks or other international agencies. We will have so much money that we will be able to lend to them.

With the Black money coming into the official system – our GDP will zoom up like a ROCKET.

The Hidden Agenda of the TOP people: -

Top guys want to control the system. They want to control all human beings as per their will. Corporate Banks is a step in that direction. They will control the money and they will control the masses.

Mr. Rajan has a fair idea of the hidden agenda when he uses the word – Bombshell. The steps have been taken and nothing will happen against the will of the top people.  

The best thing for an investor is to become more and more educated and open-minded to learn and master new investment concepts so that he can save and grow his wealth.

What NEXT?

While writing about RAHU in Vrishabh Rashi we had said the following – “Earth Elements means money/land/property and when they get affected by Air elements – they start moving up and down. Air will take whatever it comes in its way and it will take in whatever direction it is moving.”

See money is moving towards Corporates!!

This is the power of our system in guiding us well ahead of the Government policies and events. Take advantage of our system and create and control your wealth.

Have a Great Time.

Follow me on Twitter @hiteshmparikh / WhatsApp – +91-9869425399.

Live With Passion…Invest With Passion.

 

Hitesh Parikh