PNB fraud: Privatise more PSBs, toughen rules, says Arvind Subramanian

CEA offers three compelling arguments in his case for privatisation of govt-owned banks

Chief Economic Advisor to the Government of India, Arvind Subramanian, has called for increasing privatisation of public sector banks and implementing stricter banking rules.

His views come in the backdrop of recent developments in a few PSBs. While Punjab National Bank detected fraudulent transactions amounting to more than $1.77 billion from one of its branches in Mumbai, Bank of Baroda has decided to shut down its South African operations after a scandal was unearthed. The country's largest government-owned lender, the State Bank of India (SBI) had also reported loans frauds.

Addressing the Madras Management Association (MMA) Annual Convention