- Credit Distribution:
- Corporate houses can channel depositors’ money to their own group companies.
- They can direct funds to cronies at more relaxed terms.
- This could lead to misallocation of credit, away from other deserving borrowers.
- It can increase concentration of economic power.
- Financial Inclusion:
- The text does not directly discuss the influence on financial inclusion.
- However, if credit is diverted to group companies, it might reduce credit availability for broader segments.
- This could potentially hinder financial inclusion efforts if not properly regulated.