The best and workable plan to produce results and to put back the economy on the revival track is to free the public sector banks from the clutches of the Government and the bureaucrats. Recognise the fact that these banks are being killed by the Government and the bad corporate Borrowers and they are the worst non performing assets in the economy as of today. They even seem to have forgotten their basic functions of mobilisation of deposits and deployment of the funds for the growth of the economy through making loans and investments for productive purposes.They drive away the customers with poor service and exorbitant service charges. Added to this, the tax on the interest income keep away the small savers and they turn to other modes of savings encouraging even the informal and undesirable economic activities having undesirable social implications Also make RBI independent in letter and spirit and make it accountable to the parliament..Without the support of sound banking and healthy financial system the economy cannot grow is a reality and it would be wise for the Government to realise this and act accordingly.
Dr T V Gopalakrishnan
(This comment is in response to an article Working on a plan to rebuild the capacity of the banking sector that appeared in Business line dated 13/10/17).
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