Central government participation in banks should be reduced by less than 50%: advice of Abhijit

New Delhi, Oct 22, 2019, Tuesday

Nobel laureate economist Abhijit Banerjee on Tuesday expressed concern over the banking crisis in India and advised the Modi government to make some aggressive changes, including bringing down the government's participation in banks to below 50 percent to solve the problem.

He said there was an urgent need to make significant and aggressive changes to get out of this crisis. Reducing the government's stake will remove the CVC's 'pressure' from banks.

Banerjee said that the government's participation in banks needs to be reduced below 50% so that it can be taken out of the jurisdiction of the Central Vigilance Commission (CVC). By doing so, decisions can be made in the banking sector without fear of CVC scrutiny.

Banks in the country have been facing a widespread debt problem for nearly five years. Due to this, the net worth of banks is decreasing. Moreover, the problem of scams like Punjab and Maharashtra Cooperative (PMC) is increasing.

In a program organized by the Liver Foundation, he said that the current banking crisis is dire and we need to worry about it as we have seen the pattern repeatedly. We should be careful about this. I believe that there is an urgent need to make significant and aggressive changes in the banking sector.

Former Vigilance Commissioner T.V. to stop CVCA banking fraud in August this year. like this. A board was constituted under the chairmanship of Bhasin. The Board is tasked with investigating frauds of over Rs 50 crore and suggesting action.

Referring to the changes needed in the banking sector, he said, "PSU banks are unable to make decisions due to fear of CVC scrutiny." This hides the details of the bank accounts and then creates a problem.

Therefore, I would advise the government to reduce its stake in the banks so that the sentiment in the banking sector can be overcome. The banking sector has been facing the problem of high NPAs for almost five years, resulting in erosion of net worth and scams like PMC Bank are coming out in the sector.

Media is provoking anti-Modi statements, PM is watching everything: Abhijit

Nobel Laureate Abhijit Banerjee and the Prime Minister met on Tuesday in a very relaxed atmosphere. After interviewing PM Modi, Abhijit Banerjee was responding to media queries when he said that PM started the conversation with a joke. Referring to the meeting, he said that the media would entice you into giving a counter-statement to Modi.

Responding to a reporter's question related to the economy, Abhijit said that he did not fall into the trap of journalists' questions or that the Prime Minister had already warned him. PM Modi starts the conversation with a joke. He explained to me how the media is tricking me into making a statement against Modi.

They are watching TV, they are watching people, they know what you want to do. Journalists have asked Abhijit to comment on the country's economy. But understanding the intentions of the journalists, Abhijit warned him that he knew what kind of statement the media worker wanted to make.