Systematically killing public Sector Banks – Pushing away people to money sharks https://www.cenfa.org/systematically-killing-public-sector-banks/ Thomas Franco
Public sector banks are marginalised, and understaffed and people complain of poor service and shift to private banks and non-banking companies where the interest rate for loans is much higher. This has increased inequality to its highest level...
PSBs were forced to open 97.3% of the Jan Dhan accounts, whereas private banks opened only 2.7% of them.
PSBs have opened 15675442 Atal Pension Yojana accounts (91%) as of 31/3/20 where while PVBs have opened just 1562997 A/Cs (9%).
PSBs have been forced to lend more to NBFCs in spite of those failing. They get loans at around 10% interest but lend at 24% or more. The business is shifting to NBFCs, as seen in the RBI Report. They depended on borrowing from and lending only to lucrative businesses.