Write your view against Privatization of banks in India.
Answers
Answer:
My view against Privatization of banks in India.
Explanation:
Any such move would prove detrimental to the economy and result in turmoil within the industry.
This would totally defeat the idea of inclusive banking as it is practiced now and was the guiding principle at the time of the nationalization of banks.
The past history of private sector banks tells the failure. Before 1969, all banks, except the SBI, were in the private sector. Between 1947 and 1969, 559 banks failed.
Public sector banks are created out of public money. These entities are therefore duty-bound to extend all types of services to customers across categories. Privatization will impact this very root purpose
The government will have difficulty in providing low-cost financial services to rural and poor sections of society as the private may not like to extend its services to them.
Answer:
Public Sector Banks (PSBs) in India is fragmented, with some of them reeling under the mounting pressures of Non-Performing Assets (NPAs). The Public sector banks (PSBs) accounted for 8.9 trillion, or 86%, of the total NPAs. The PJ Nayak Committee in 2014 had suggested that government share should come below 50% i.e. privatize state-owned banks.
Explanation:
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