By PTI
NEW DELHI: The Congress on Saturday accused the Centre of getting pressured the RBI to “disown” its analysis report which argued towards a “big bang approach” to privatisation of banks, and demanded that the federal government come out with a white paper on public sector banks’ privatisation.
Party chief Rahul Gandhi mentioned “tanashah’s (dictator’s) wish is the government’s command” and even impartial establishments just like the RBI, which have been the anchors of India’s financial development, have been pressured to bend earlier than the “supreme leader” and the agenda of his “mitron friends” on occasion.
“A well-researched article published by the RBI advocated against hurried privatisation of public sector banks and praised their efficiency. It disturbed the ‘tanashah’ very much,” he mentioned.
“The government sprung into action to restore its supreme leader’s peace of mind. The next day, the RBI issued a clarification that it was not against privatisation of banks,” Gandhi mentioned.
Public sector banks have acted as shields throughout crises for India, they’ve been the harbingers of development and devices of economic inclusion, he mentioned.
“Their reckless privatisation will have catastrophic consequences, and so will the diminishing independence of India’s institutions,” Gandhi mentioned.
The Opposition social gathering hit out on the BJP over the privatisation of public sector banks (PSBs), calling it “Beche Jao Party”, and alleged that the central authorities had modified the Reserve Bank of India (RBI) to “Reverse Bank of India” by forcing it to make a “U-turn” over its personal report.
The RBI on Friday mentioned a analysis paper favouring gradual privatisation of public sector banks (PSBs) shouldn’t be its view however that of the authors of the report.
Addressing reporters on the AICC headquarters right here, Congress spokesperson Supriya Shrinate mentioned the press convention was scheduled to debate a vital research by the RBI analysis unit revealed within the August RBI Bulletin that raised issues over the reckless privation of PSBs however as an alternative the social gathering has to first deal with how an establishment just like the RBI has been pressured by the federal government to difficulty a clarification.
The RBI has “disowned” the analysis paper, emphatically stating that it’s not the central financial institution’s view however that of the writer, she mentioned.
“Clearly, this isn’t the first time the RBI has been forced to accept the government’s will — remember the disastrous demonetisation,” Shrinate mentioned.
It’s a pity that the identical RBI which as soon as hailed nationalisation of 14 banks as the only most necessary financial determination taken by any authorities since 1947, is immediately pressured to disown its researchers’ report praising PSBs and their effectivity, the Congress chief mentioned.
The variety of PSU banks in India has been diminished from 27 to merely 12 now, and the federal government plans to privatise extra, Shrinate alleged.
The research by the RBI’s analysis unit clearly pink flags the results of financial institution privatisation because it highlights how the cornerstone of presidency insurance policies needs to be public good. So, the usual of effectivity for PSBs cannot be earnings alone, she mentioned.
Shrinate identified that the report insists that enormous PSBs are higher at precedence sector lending together with infra lending. Also, it states that state-owned banks have performed an important function in counter cyclical measures that personal banks don’t implement, she mentioned.
Shrinate mentioned the RBI Bulletin clearly states that on measures of economic inclusion like whole branches, agricultural advances and precedence sector lending advances, public banks show to be extra environment friendly than personal ones.
The daring determination taken by former prime minister Indira Gandhi to nationalise banks broke the monopoly of some cash lenders and ensured customers, farmers, center class and the poor had entry to cash as an alternative of only a choose few very wealthy industrial homes.
“I have said it before and I will say it again — public sector banks are not just financial institutions, they are actually agents of social empowerment,” she mentioned.
Underlining three calls for of the Congress, Shrinate mentioned the Modi authorities should lay out a full white paper on the privatisation of PSBs.
“The Modi government must also stop pressuring institutions like the RBI to tow the government line. One has to look no further than demonetisation to assess what forcing the RBI resulted in,” she mentioned.
The Modi authorities should pause, assess and make a public declaration on what it goals to realize via “reckless privatisation”, Shrinate mentioned.
The analysis paper revealed within the August difficulty of RBI Bulletin mentioned “the gradual approach to privatisation adopted by the government can ensure that a void is not created in fulfilling the social objective of financial inclusion”.
“A big bang approach of privatisation of these banks may do more harm than good. The government has already announced its intention to privatise two banks. Such a gradual approach would ensure that large-scale privatisation does not create a void in fulfilling important social objectives of financial inclusion and monetary transmission,” it mentioned.
NEW DELHI: The Congress on Saturday accused the Centre of getting pressured the RBI to “disown” its analysis report which argued towards a “big bang approach” to privatisation of banks, and demanded that the federal government come out with a white paper on public sector banks’ privatisation.
Party chief Rahul Gandhi mentioned “tanashah’s (dictator’s) wish is the government’s command” and even impartial establishments just like the RBI, which have been the anchors of India’s financial development, have been pressured to bend earlier than the “supreme leader” and the agenda of his “mitron friends” on occasion.
“A well-researched article published by the RBI advocated against hurried privatisation of public sector banks and praised their efficiency. It disturbed the ‘tanashah’ very much,” he mentioned.
“The government sprung into action to restore its supreme leader’s peace of mind. The next day, the RBI issued a clarification that it was not against privatisation of banks,” Gandhi mentioned.
Public sector banks have acted as shields throughout crises for India, they’ve been the harbingers of development and devices of economic inclusion, he mentioned.
“Their reckless privatisation will have catastrophic consequences, and so will the diminishing independence of India’s institutions,” Gandhi mentioned.
The Opposition social gathering hit out on the BJP over the privatisation of public sector banks (PSBs), calling it “Beche Jao Party”, and alleged that the central authorities had modified the Reserve Bank of India (RBI) to “Reverse Bank of India” by forcing it to make a “U-turn” over its personal report.
The RBI on Friday mentioned a analysis paper favouring gradual privatisation of public sector banks (PSBs) shouldn’t be its view however that of the authors of the report.
Addressing reporters on the AICC headquarters right here, Congress spokesperson Supriya Shrinate mentioned the press convention was scheduled to debate a vital research by the RBI analysis unit revealed within the August RBI Bulletin that raised issues over the reckless privation of PSBs however as an alternative the social gathering has to first deal with how an establishment just like the RBI has been pressured by the federal government to difficulty a clarification.
The RBI has “disowned” the analysis paper, emphatically stating that it’s not the central financial institution’s view however that of the writer, she mentioned.
“Clearly, this isn’t the first time the RBI has been forced to accept the government’s will — remember the disastrous demonetisation,” Shrinate mentioned.
It’s a pity that the identical RBI which as soon as hailed nationalisation of 14 banks as the only most necessary financial determination taken by any authorities since 1947, is immediately pressured to disown its researchers’ report praising PSBs and their effectivity, the Congress chief mentioned.
The variety of PSU banks in India has been diminished from 27 to merely 12 now, and the federal government plans to privatise extra, Shrinate alleged.
The research by the RBI’s analysis unit clearly pink flags the results of financial institution privatisation because it highlights how the cornerstone of presidency insurance policies needs to be public good. So, the usual of effectivity for PSBs cannot be earnings alone, she mentioned.
Shrinate identified that the report insists that enormous PSBs are higher at precedence sector lending together with infra lending. Also, it states that state-owned banks have performed an important function in counter cyclical measures that personal banks don’t implement, she mentioned.
Shrinate mentioned the RBI Bulletin clearly states that on measures of economic inclusion like whole branches, agricultural advances and precedence sector lending advances, public banks show to be extra environment friendly than personal ones.
The daring determination taken by former prime minister Indira Gandhi to nationalise banks broke the monopoly of some cash lenders and ensured customers, farmers, center class and the poor had entry to cash as an alternative of only a choose few very wealthy industrial homes.
“I have said it before and I will say it again — public sector banks are not just financial institutions, they are actually agents of social empowerment,” she mentioned.
Underlining three calls for of the Congress, Shrinate mentioned the Modi authorities should lay out a full white paper on the privatisation of PSBs.
“The Modi government must also stop pressuring institutions like the RBI to tow the government line. One has to look no further than demonetisation to assess what forcing the RBI resulted in,” she mentioned.
The Modi authorities should pause, assess and make a public declaration on what it goals to realize via “reckless privatisation”, Shrinate mentioned.
The analysis paper revealed within the August difficulty of RBI Bulletin mentioned “the gradual approach to privatisation adopted by the government can ensure that a void is not created in fulfilling the social objective of financial inclusion”.
“A big bang approach of privatisation of these banks may do more harm than good. The government has already announced its intention to privatise two banks. Such a gradual approach would ensure that large-scale privatisation does not create a void in fulfilling important social objectives of financial inclusion and monetary transmission,” it mentioned.