New Delhi:
To keep a tab on possible unfair practices, the Competition Commission
of India has begun a study of functional aspects of the country's
growing financial sector, including banking and insurance segments.
The study comes in the backdrop of the government push for various
financial sector reforms as part of
larger efforts to bolster the
country's economic growth.
The study will broadly look at different dimensions of the financial sector, CCI chairman Ashok Chawla said.
"(The issues to be studied include) how the market functions and how
could be the possible anti-competitive practices in those areas like
banking, insurance so on and so forth. That is broadly the mandate of
the study. These are underway at the moment," Mr Chawla told PTI in an
interview.
Competition Commission of India (CCI) has the mandate to act against anti-competitive practices across sectors.
The government is actively pursuing long-term financial sector reforms
including further opening up of various segments, such as insurance and
pension, to foreign players.
Liberalising the financial sector would lead to participation for more
number of players and in turn may result in increased competition, while
it could also increase the fears of anti-competitive practices in the
second.
Asked whether the CCI would look into the almost similar movement in
interest rates fixed by various banks, Mr Chawla said there is no
concern of anti-competitive practice at this time on the issue.
"The Reserve Bank has given them (banks) the freedom to fix rates the
way they want. Some of them have changed and some have changed. I don't
think there is any concern in that area at this point of time," he said.