In a July 2022 Policy Paper ‘Privatisation of Public Sector Banks in India: Why, How and How Far?’, former NITI Aayog Vice-Chairman Arvind Panagariya and National Council of Applied Economic Research (NCAER) Director General Poonam Gupta made a case for the privatisation of Public Sector Banks based on the ‘superior performance’ of Private Banks.
The report recommended the RBI to regulate all private banks with a private board for matters of governance of each privatised bank, the appointment of management, and salaries for the staff.
A bird’s eye view of how the public sector banking infrastructure in India has evolved over the years can help in setting the context for the reforms of India’s banking system.
Public Sector Banks in the Post-Independence Era: 1947 to 1990
From Polstrat, a non-partisan political consultancy which aims to shift the narrative of political discourse in the country from a problem-centric to a solutions-oriented approach.