Pitching for radical reforms in the banking sector, Chief Economic Adviser (CEA) Arvind Subramanian today said that time has come for rethinking on the ownership of public sector banks (PSBs) in India.
Subramanian also regretted that recent banking frauds, including the one at Punjab National Bank (PNB), have resulted in a set back to efforts being made to resolve the bad loan problem under the Insolvency and Bankruptcy Code (IBC).
"I think we are now coming more and more to the view that if you want this problem (spate of frauds in PSBs) not to recur in the future, then we can't throw money in a black hole.
"My own strong view is that we need to rethink on public sector ownership of banks," he said while interacting with the students of Delhi School of Economics (DSE).
Subramanian said that going forward, "We need to have radical agenda for reform of the banking sector if we want these things not happen in future."
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