End dual control of public sector banks, says Former RBI governor Y V Reddy

Reddy said a "strategic view" should be taken when it comes to the merger of banks

Former Reserve Bank of India (RBI) Governor Y V Reddy on Thursday said dual control of public sector banks (PSBs) should end. “PSBs should be either converted into companies and the control should be with the Reserve Bank of India (RBI), or, it should entirely be under the government,” said Reddy at the third anniversary function speech of Bandhan Bank.

A few months back, RBI Governor Urjit Patel had highlighted the limited powers that the central bank enjoys over the PSBs.

Reddy said the Narasimhan committee in the 1990s had suggested putting an end to dual control, but