Q.2) “Merging of banks would nudge India towards a $5-trillion economy but carry significant risks.” Comment.
Q.2) “Merging of banks would nudge India towards a $5-trillion economy but carry significant risks.” Comment.
Subscribe to ForumIAS
Updates
Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS
recently finance minister nirmala sitaraman announced in press conference that we will merge public sector bank with each other so that our banks can compeit with global standard and reduce regional disparity and our bank will work very effectivly.
NDA goverment set up a goal that by 2022 india will become 5 trillion economy which is very risky because nowadays country is facing slowdown so it creats hurdle to reach there.
in this circumstances govt announce a merger of PSB and now out of 27 only 12 banks will remain PSB.
REASON BEHIND MERGER:-
first goverment had announced in budget that they will give 70000cr PSB to boost banking sector.
second after merger bank will have capacity to give loans to corporates and others. so they will give loans and economy will be on track.
CHALLENGES
due to high NPA banks hesitate to lend money to corporate.
due to that corporate have no money and projects will stope and economy will suffer.
CONCLUSION
govt has not focus on farmers and MSMS sector so thy need to implement welfare scheme and invest building infrastructure project so that creat employment and economy will steadily increase
recently finance minister nirmala sitaraman announced in press conference that we will merge public sector bank with each other so that our banks can compeit with global standard and reduce regional disparity and our bank will work very effectivly.
NDA goverment set up a goal that by 2022 india will become 5 trillion economy which is very risky because nowadays country is facing slowdown so it creats hurdle to reach there.
in this circumstances govt announce a merger of PSB and now out of 27 only 12 banks will remain PSB.
REASON BEHIND MERGER:-
first goverment had announced in budget that they will give 70000cr PSB to boost banking sector.
second after merger bank will have capacity to give loans to corporates and others. so they will give loans and economy will be on track.
CHALLENGES
due to high NPA banks hesitate to lend money to corporate.
due to that corporate have no money and projects will stope and economy will suffer.
CONCLUSION
govt has not focus on farmers and MSMS sector so thy need to implement welfare scheme and invest building infrastructure project so that creat employment and economy will steadily increase