An ecosystem is created where there is premium on honesty: Goyal
New Delhi, Aug 24: Long due banking reforms have been the focal point of the deliberations at India Banking Conclave (IBC) where Union minister Piyush Goyal too throw some light on the banking reforms. Though there was an entire session on Indian debt, Indian Problem and Indian Solution but the Union minister started his talks from the point that now Indian banking is being looked upon with Indian prism.
The Union minister said that earlier everything was looked upon at international perspective and every problem's solution was sought internationally. He said, "I am happy that Indian and indigenous approach is being adopted to solve problems of the banking sector. The other thing is that nowhere in the world, the government is running banks." India has always looked towards other countries for the things that were done only in India to resolve them.
But besides the banking industry run by the government, there is another aspect that the banking sector is supporting they are farmers, industry, business and many other investment seeker entities. From tiny, medium and big enterprises, all of them get finance from banks. "Small loans are made available to save poor from the clutches of money lenders. India has a unique banking system where government banks have not only to compete nibble-footed private banks but international banks. And they all were equal footing," said Goyal.
There is no denying the fact that wrong practice crept in to the Indian banking sector. He took on the previous government by saying that loans were sanctions on phone and political pressure in appointment and subsequent operations were very much there. This is not the malaise of the government banks but private sector as well have been facing the same problem. There was complete inability and lack of political resolve to solve these problem in the past one decade. Goyal said that An ecosystem in the banking sector has been created where there is a premium on honesty in the present regime.
Goyal claimed that there is zero political interference in the banking sector at the moment but between 2004 and 214 banking sector faltered in their practice and balance sheet was fudged in such a manner that growth was shown and dividend was also given. And from 2008 to 2016, they tripped their balance sheet. Now the PM has decided to clean up the banks and he stood firm. Bail out package has already been given to banks so they are able to come out with crisis. He said that actually when the previous government needed to catch bull by horn they allowed the problem to grow.
Answering a question Goyal said that the government disassociated itself from appointing CEO and Chairmans of the banks. List of eligible candidates is interviewed by group of persons. But now the nation is recognized across the world for its integrity for all these measures taken by the government.