Mains Question:
Q1. “In India, PSBs happen to dominate the banking industry, however, they are burdened with multiple challenges.” In the light of this statement, discuss the challenges faced by them and also suggest remedial measures. (250 words)
- Approach
- Introduction- Brief about public sector banks (PSBs) in India
- Significance/need of PSBs
- Implementation of central government’s decisions (MUDRA, Skill India, Jandhan Yojana, PM Kisan)
- stabilisation and growth of the different sectors
- higher degree of market confidence
- better financial inclusion objectives and labour cost efficiency
- Need of social control in banking sector
- Challenges
- gigantic bad debts/NPAs
- banking scams
- lack of accountability
- failure of internal and external audits
- Required measures
- Enhanced governance
- Managing non-performing assets
- Important checks and balances in place
- Necessary legislative changes
- Conclude accordingly
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