In a reportedly heated meeting between the Reserve Bank of India (RBI) and government nominees, RBI’s Deputy Governor, Viral Acharya suggested privatisation of banks as a solution to the government's precarious financial position.
In the 23 October meeting that ran for over ten hours, government officials stated that they did not want to borrow more money and ruin fiscal deficit targets to pump in more money into the Public Sector Banks (PSBs).
In response to this, Mr Acharya said the government should consider privatising PSBs if “the fiscal deficit is a binding constraint” as per the Business Standard report. The government had missed its fiscal deficit targets for last year. Missed targets are not favourable to attracting investment to the country.
Eminent economist and former NITI Aayog chairman, Arvind Pangariya had made a formidable case for the same in March 2018. He stated, “I firmly believe that privatisation of all public sector banks, except perhaps the State Bank of India, should be on the election manifestos of all parties who wish to present themselves as serious candidates to form the government in 2019.”
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.