Letters: No country for PSBs | Business Standard Letters

Letters: No country for PSBs | Business Standard Letters

Nice presentation by Business Standard. Copied below is submitted version and online comments:
This refers to the
article “A Swachh Financial Sector Abhiyan?”(IRRATIONAL VOICE, November 17).
The call for the cleansing of Indian Financial Sector has come at the right
time. One had started getting a feeling that, as has been the experience
earlier, India as a country was slowly returning to its slumber, finding
comfort in the promises from Modi on the repairs and maintenance of the basic
structure of India as a nation.

Though the Indian banking
system, more particularly public sector banks as a group, has been the target
of criticism for all ills in the financial sector. The previous finance
minister and spokespersons from the finance ministry had given an impression
that the Indian financial sector will be relieved of all ills by implementing
the commissioned report of the Financial Sector Legislative Reforms Commission.
This article exposes the weaknesses of FSLRC report and stresses the need for
viewing financial sector as one entity which manages public funds, irrespective
of source(the public funds include public savings in the form of bank deposits,
investments in various financial and non-financial instruments with non-bank
institutions including corporates and other bodies dependent on funds mobilised
from public).
The inadequacy of
regulatory apparatus and arrangement for resolution of grievances of depositors
and ‘borrowers’ outside the banking system is a serious issue brought out in
the article. Even if the government is keen to use the FSLRC report as the
starting point for reforms in the financial sector, a closer look at the issues
raised here(in the article) and changing the focus from destabilising existing
regulatory and supervisory mechanism(mainly represented by RBI) to sharpening
the tools used by its various limbs for improving  efficient functioning of financial sector
would bring back the lost credibility in governance.

M G Warrier, Mumbai  



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