International Conference on Finance and Economics -2017
Former RBI governor C. Rangarajan has advised the government to retain a few public sector banks under its control and allow the rest to be privatised.
“Let’s make the available capital to strengthen few limited banks in the interest of the country,” he said. Contending that banking system required radical changes, Mr Rangarajan said that he was taking a pragmatic view. “If the public sector banks have to expand their activities, the state could provide 51 % of the additional capital requirement. This will put a limit on how much capital the government can put in,” he said.