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Debashis Basu: 3 problems with 7-point Indradhanush

Debashis Basu

On the eve of Independence Day, the government launched Indradhanush, a seven-point programme to rejuvenate public sector banks (PSBs). These cover better senior appointments, setting up a Bank Boards Bureau, pumping in more capital, reducing bad loans, empowering the management, improving accountability and better governance. However, would these changes rapidly deliver what we really need: a competitive, profitable and customer-friendly banking sector? As I see it, there are three major problems with the Indradhanush idea. 1. Where is RBI in this? The Ministry of Finance must be buzzing ...