Press release- Clarification on “Privatisation of Public Sector Banks an Alternate Perspective “published in the August 2022 (dated-19.08.2022)-RBI.View Pdf
Press release- Clarification on “Privatisation of Public Sector Banks an Alternate Perspective “published in the August 2022 (dated-19.08.2022)-RBI.
- In this regard, it is clarified that:
- As clearly stated in the article itself, the views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.
- The Press Release relating to the August 2022 Bulletin highlights that “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”.
- The concluding paragraph of the article, inter-alia, mentions that:
- “From the conventional perspective that privatisation is a panacea for all ills, the economic thinking has come a long way to acknowledge that a more nuanced approach is required while pursuing it”;
- “Recent mega merger of PSBs has resulted in consolidation of the sector, creating stronger and more robust and competitive banks”;
- “A big bang approach of privatisation of these banks may do more harm than good. The government has already announced its intention to privatize 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. Refer attachment for further details.