Debt advisory services firm A K Capital Services is likely to manage Indias first Debt Exchange Traded Fund (ETF) proposed to be set up for PSUs and public sector banks to raise long terms funds from the market.
Goyal said the govt is open to giving more powers to RBI to deal more effectively with frauds like the ones allegedly committed by Nirav Modi in PNB.
Union minister of state for social justice and employment Ramdas Athawale today met public sector banks to take stock of loans given by them under various government schemes, to the weaker section.
India’s interim finance minister said that the government was committed to support all state-run banks and strengthen their operations, after several lenders reported a jump in net losses last month.
Top bankers from north and south India discussed modalities to improve credit flow and setting up global standards in the banking system, Piyush Goyal said.
Moody's said the govt's recapitalisation plan for 21 state-run banks will help them in meeting regulatory capital needs, but will be insufficient to support credit growth.
Goyal vowed to put on track the banking sector, which has been marred by scandals that threaten to have repercussions for the broader economy.
The monetary threshold for public sector banks to report frauds to different departments of the CBI for a probe has been revised, according to the CVC.
IMF has urged India to strengthen the ability of banks to go after debtors and warned that debts negatively impact investments.
Panagariya said that predominance of scandals and NPAs in PSBs is only one albeit important reason for privatisation of PSBs.