Monday, April 11, 2016

Entire Banking including RBI is under Political Fiefdom

Excellent piece from Iyer at last. He has hit right on the head of the nail without mincing any words. Nationalised Banks are run by political bosses and the loot is made easy in the form of bad loans, write off of loans etc. Accounts are fudged and balance sheets are prepared as per the dictates of the Directors appointed by the politicians on banks Boards. Loans are given as per the desires and policies enunciated to suit the political bosses and their fraternity in the Industry. RBI was a hindrance and RBI's powers have been gradually stripped. There are two Government Directors on RBI Board and what they say or hint becomes RBI's policies. The autonomy of RBI is only on paper and RBI has lost its operational independence long back. Banks bad debts are man made with the active support of political masters and industrialists. Iyer has beautifully analysed the issues involved in PSBs.Even the present government does not want to lose its grip either on RBi or banks. On the Contrary , the Government wants more control on banks and Bank Boards Bureau is in that avatar.

Dr T V Gopalakrishnan

 (This comment in response to SA Iyer's article Banks will remain political fiefdoms till privatized appeared in ET dt 10/4/16) 

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