Big news related to PSU banks! The Modi government is considering creating big banks in the country, can increase FDI limit
Modi Government is once again preparing to take important steps towards strengthening and modernizing the structure of government banks. The government wants that there should be some big and strong banks in the country which can compete at the global level as well. For this, discussions are going on at many levels and big decisions can be taken soon.
Modi government can take a big decision on PSU banks
Modi Government is once again preparing to take important steps towards strengthening and modernizing the structure of government banks. The government wants that there should be some big and strong banks in the country which can compete at the global level as well. For this, discussions are going on at many levels and big decisions can be taken soon.
Foreign investment can provide strength
According to a Bloomberg report, the government is now considering increasing the limit of foreign direct investment (FDI) in public sector banks i.e. government banks. In the current system, the limit of foreign investment in government banks is limited, but the government wants to relax it so that big investors can be attracted. This will improve the capital position of the banks and they will be able to contribute more strongly to economic development.
Steps can be taken towards merger
The government is also thinking in this direction that some government banks should be merged with each other. This will connect weak banks with strong banks and their service capacity will also increase with a large network. This will increase competition in the banking sector, improve services and customers will get better facilities.
Consideration on new bank permits too
According to Bloomberg report, the government can also review the process of giving bank permits i.e. licenses to new banks. Only a few new banks have been opened in India in the last few years, but now the government wants to breathe new life into the banking sector. Especially in the era of digital banking, the government wants to encourage such institutions that can provide banking services to remote areas of the country with the help of technology.
Attempts to create big banks
The focus of the Modi government is now on creating big banks. That is, the government banks of India should be so big, strong and modern that they can work not only in the country but also in other countries of the world. For this, it is necessary that their financial position is strong, the management is professional and there is no lack of investment. This is the reason why the government is now considering options like attracting foreign capital and merging banks.
The plan is still in the initial stage
However, this entire plan is still at the idea stage. The government has not made any formal announcement on this, but reports are telling that in the coming time there can be a big announcement in this direction. If this happens, then a big change will be seen in the government banking system, which will directly affect the country's economy.
