{"id":202063,"date":"2022-08-26T17:33:00","date_gmt":"2022-08-26T12:03:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=202063"},"modified":"2022-08-26T17:46:54","modified_gmt":"2022-08-26T12:16:54","slug":"privatization-of-psbs","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/privatization-of-psbs\/","title":{"rendered":"Privatization of PSBs"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cPrivatization of PSBs\u201d<\/b> published in <\/span>The Hindu <\/b>on 26th August 2022.<\/b><\/p>\n

What is the News?<\/b><\/h5>\n

An article titled \u2018Privatization of Public Sector Banks: An Alternate Perspective\u2019 has been published in the RBI bulletin.<\/span><\/p>\n

What is the purpose of the article ‘Privatization of Public Sector Banks’?<\/b><\/h5>\n

The authors of the article have cautioned the government against a big bang approach of privatization of these banks as it would do more harm than good.\u00a0<\/span><\/p>\n

Note:<\/b> In her FY22 Budget speech, the Finance Minister announced plans to privatize two state-owned banks.\u00a0<\/span><\/p>\n\n\n\n
Read more: Big bang privatization of banks can be harmful: RBI article<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Why the public sector banks should be not privatized? <\/b><\/h5>\n

Following are the arguments given against the privatization of the PSBs in the report:<\/span><\/p>\n

Rural Penetration:<\/b> Over 60% of PSB branches are in rural and semi-urban areas indicating the crucial role they play in financial inclusion.<\/span><\/p>\n

Rural Lending:<\/b> PSBs have been the leading lenders and meet over 60% of rural credit demand. While private banks have gradually made inroads in rural lending, the progress has been slow so far.<\/span><\/p>\n

Sectoral Share: <\/b>PSBs have allocated a larger share to agriculture and industry than private banks. The share of PSBs in agriculture lending has also increased over time.<\/span><\/p>\n

Infrastructure Lending: <\/b>PSBs account for a majority of infrastructure loans and their role has been especially crucial against the backdrop of the withering away of erstwhile development financial institutions<\/span><\/p>\n

What should be the way forward according to the authors?<\/b><\/h5>\n

The authors advocate a gradual approach to privatization so that it doesn’t create a void in fulfilling the social objectives of financial inclusion and monetary transmission.<\/span><\/p>\n\n\n\n
Read more: How should public sector banks be privatised?<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cPrivatization of PSBs\u201d published in The Hindu on 26th August 2022. What is the News? An article titled \u2018Privatization of Public Sector Banks: An Alternate Perspective\u2019 has been published in the RBI bulletin. What is the purpose of the article ‘Privatization of Public Sector Banks’? The authors… Continue reading Privatization of PSBs<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10498],"class_list":["post-202063","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700771814,"cached_date":1704914237},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=202063"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/202063\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=202063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=202063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=202063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}