The RBI put out a paper on bank privatisation in the RBI Bulletin.. The paper argued that public sector banks (PSBs) have done better on financial inclusion that private banks. It also found that counter-cyclical policy happens better through PSBs, no surprise as they are subject to broad government direction.
On these grounds, the paper argued that 'big bank' privatisation is not desirable, we must hasten slowly. Somehow, the seems to have got interpreted in some quarters as anti-privatisation. The RBI was constrained to issue a clarification. The RBI said the paper does not reflect the views of the RBI. It also said that "instead of a big bang approach, a gradual approach as announced by the Government would result in better outcomes", which is correct.
Any controversy over the paper is entirely avoidable.
There is another issue, however, on which there appears to be a difference. The RBI put out a discussion paper seeking views on the question of charging for UPI payments. The government clarified promptly that "UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services.".
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