Chennai, The Indian banking sector's largest union, the All India Bank Employees' Association (AIBEA), on Tuesday opposed the recommendations made by the Reserve Bank of India's (RBI) Internal Working Group as they are "retrograde" and would endanger people's money.

The RBI's internal working group recently recommended that large corporate/industrial houses may be allowed as promoters of banks, promoters' stake in the bank's equity share capital can be increased from 15 to 26 per cent, and large non-banking finance companies owned by the corporate houses can be converted as full-fledged banks, among others.

"All these suggestions and recommendations are most retrograde and unwarranted in Indian conditions. Our Banks represent Rs 135 lakh crore of people's money," AIBEA General Secretary C.H. Venkatachalam said in a statement.

According to him, RBI is supposed to be the repository of the people's faith in the banking system but unfortunately, it is itself is suggesting measures that will endanger the safety of people's money in the banks.

"We strongly denounce the provocative recommendations of the RBI Working Group and urge upon the Government to reject these proposals," Venkatachalam said.