You are here: Home » Economy & Policy » News
Business Standard

Privatisation not panacea for all ills: ex-RBI deputy guv S S Mundra

Fomer RBI deputy governor S S Mundra Friday said that privatisation is not a panacea for all the ills and this myth has long been busted

Topics
S S Mundra | Reserve Bank of India | privatisation

Press Trust of India  |  Kolkata 

Illustration by Ajay Mohanty
Illustration by Ajay Mohanty

Fomer RBI deputy governor

Friday said that is not a panacea for all the ills and this myth has long been busted.

A more effective result can be produced if a public sector character is retained and operational freedom and ownership are separated, he said


Speaking at a webinar organised by Bengal Chamber, Mundra said that the idea that ownership changes the behaviour of an entities are not proper.

"is not the panacea for all ills. The myth is that ownership changes the behaviour has been busted. We have seen similar behaviour on either side of the spectrum", he said.

Union Finance Minister Nirmala Sitharaman in her budget speech had said that two public sector banks will be privatised in the coming fiscal.

"All said and done given the banking environment that we are operating in India and the continuous setbacks in the Indian and world economies in the past couple of decades, the assurance of a sovereign ownership for a financial entity makes all the difference".

There are many examples where operation is separated from sovereign ownership..

"So it could be a good model. There are two issues - one is operational freedom and the second is capital. If there is growth opportunity and if capital is to be raised then there are many limitations because there are many claims from different sectors.

"Even if it is done in stages it would be helpful that you have that sovereign assurance and operational freedom of raising capital", he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, February 12 2021. 20:24 IST
RECOMMENDED FOR YOU
.