On Tuesday after meeting PM Narendra Mod, Nobel laureate Abhijit Banerjee flagged concerns about banking crisis in India and called for aggressive changes to deal with the situation
New Delhi, Oct 22: On Tuesday after meeting PM Narendra Mod, Nobel laureate Abhijit Banerjee flagged concerns about the banking crisis in India and called for aggressive changes to deal with the situation. Here are the major takeaways:
1. There is a need to bring in important and aggressive changes to deal with the crisis, he said during interactions with media in New Delhi.
2. Banerjee said there is need to bring down stake of the government to below 50 per cent in banks so that the decisions are taken without fear of Central Vigilance Commission.
3. The banking system has been afflicted by the scourge of high NPAs for nearly five years now, which has led to networth erosion and discovery of scams in the sector, with the Punjab and Maharashtra Cooperative Bank (PMC) being the new addition.
4. Earlier in August, the Central Vigilance Commission had constituted the Advisory Board for Banking Frauds headed by former Vigilance Commissioner T M Bhasin to examine bank fraud over Rs 50 crore and recommend action.
5. On August 30, Finance Minister Nirmala Sitharaman had said that the profitability of public sector banks was improving as the total gross non-performing assets of public sector banks came down to Rs 7.9 lakh crore at end-March 2019 from Rs 8.65 lakh crore at end-December 2018.
6. Nobel Prize winner Abhijit Banerjee, who met Prime Minister Narendra Modi, said on Tuesday that an important point for India is to create a bureaucracy which takes the views of the people into account.
7. He said the Prime Minister started by cracking a joke about how the media is trying to trap him into saying anti-Modi things. "He has been watching TV, he has been watching you guys, he knows what you are trying to do," Dr Banerjee said, chuckling.
8. Terming his meeting with Modi as a unique experience, Banerjee said that the prime minister spoke on governance and bureaucracy.
9. "It was a privilege to have this meeting with the Prime Minister. The Prime Minister was kind enough to give me quite a lot of time and to talk a lot about his way of thinking about India which was quite unique," he said.
10. "He (Modi) talked about the way he sees governance in particular...and how it, therefore, creates structures of elite control over the governance process," Banerjee added.
The renowned economist revealed how the Prime Minister is taking steps to reform the bureaucracy."He also very nicely explained how he is trying to reform bureaucracy to making it more responsive to understand ways in which people's views need to be taken into account and expose them more to the reality on the ground," Banerjee said.
With Agencies, Pic Google