In spite of Public Sector Banks doing a yeomen services, disbursing direct benefit transfers, Insurance schemes, all Govt schemes and lost more than 1300 employees, NITI AAYOG is still talking of Privatisation which is going to lead to disaster. In the last 7 years of NDA, the NPA has gone up to Rs.1143354 Cr out of which major component is large loans.
What is needed now?
Ask Banks to increase branches and staff and lend more to poor and lower middle class at concessional rate of Interest. Loans below Rs.5 lakh will make a lot of difference.
Bear the Interest portion through interest subvention and reintroduce Interest subvention for Gold Loans.
Allow restructuring of existing Loans where it is needed. Except large loans above Rs.100 crores, all loans to be restructured case by case.
Launch special long term loans for Health infrastructure, Housing, MSMEs, Youth, Women and Farmers.
Announce that No Privatisation of Banks in near future and 5-day week for Bankers which will enthuse and energize them.
Introduce Super Rich Tax.
Reduce prices on Petrol, diesel & Gas helping people to spend on other things.
Provide Rs.7500 to those who are not taxpayers per month for 6 months.
Recruit more people in Govt, Public Sector undertakings and Banks.
Above all, accept mistakes and dismantle Aniti Ayog and introduce a Development Council with well-meaning people as done in Tamilnadu by the new Chief Minister.
Thomas Franco is former General Secretary of All India Bank Officers’ Confederation.