Nobel laureate Abhijit Banerjee on Tuesday suggested reducing government equity in public sector banks to below 51 per cent in order to end the fear psychosis of bankers.
New Delhi, Oct 22: Nobel laureate Abhijit Banerjee on Tuesday suggested reducing government equity in public sector banks to below 51 per cent in order to end the fear psychosis of bankers.
Addressing a press conference here, the US-based economist said that fear of investigation by the Central Vigilance Commission (CVC) in default cases had paralysed the banking system and bankers do not want to lend. "Reducing government equity in public sector banks to under 51 per cent will take them out of the CVC purview," he said.
Refusing to take many questions on the economy or contentious issues, Banerjee said that in his meeting with Prime Minister Narendra Modi earlier in the morning, the latter had joked that the media was trying to trap him and get anti-Modi comments out of him.
Modi, who told the noted economist that the country is proud of his achievements, took to social media after the meeting.
"Excellent meeting with Nobel Laureate Abhijit Banerjee. His passion towards human empowerment is clearly visible. We had a healthy and extensive interaction on various subjects," PM Modi wrote on Twitter.
"India is proud of his accomplishments. Wishing him the very best for his future endeavours."
Abhijit Banerjee is visiting India for the first time since winning the Nobel Prize. He is also scheduled go to his hometown Kolkata to visit his mother. He is scheduled to spend two days in his hometown.
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