Today, we can understand why companies like Tata and Reliance won't be able to float banks in the near future. The Synopsis We wrote a few days ago on how central banks must be allowed to operate freely. We wrote — in it. "Central banks serve as diligent guards in healthy democracies. Guardians with extensive economic knowledge and wisdom who can help a nation through turbulent seas. They've been taught to be patient and think about what's going on in real time. They are open and typically encourage constructive discussion and disagreement. And there's the issue of public responsibility. To avert an economic disaster, all of these characteristics are required." And nothing better illustrates this idea than what occurred this week. After almost a year of study and debate, the RBI (our own attentive watchdog) decided against providing full-fledged banking licences to deeply established corporate companies or industrial houses (think Reliance or Tatas). For the u...