Banking reforms new government’s agenda

The Indian electorate can now have a sigh of relief since the acrimonious Lok Sabha campaign winds to a close and thus the government at the center should consider and get down to the task of governance reforms at PSBs.
The government will have its work cut down since they would be looking forward to putting the Indian economy back on the right track and that would include taking up agendas on economic reforms which haven’t’ been finished.
The banking reform should be in there to-do list since the banking system was struggling under the weight of non-disclosure of the NPAs. However, the government before the elections was able to manage to force banks to disclose loans and provision for them. Though a new bankruptcy code was legislated to help lenders, most of the resources were used in solving the issues at public sector banks. 
Thus to prevent such crisis again, the structural reforms are imperative at three counts for the PSBs. The loans were concentrated in a handful of borrowers, and the rest didn’t account for anything, such as poor credit appraisal and risk management system have been responsible for them. This situation needs a drastic overhaul. The RBI has imposed tighter curbs on the group level and bank level exposure to the credit system of the banks. 
 
Second, strict action needs to be taken against the bankers who willingly work with the unlawful corporate borrowers and grant them easy loans. However, misjudgment on the part of the banker is acceptable. The recruitment policies of the PSBs need to be updated and be made more thorough along with the top management being more responsible for their subordinated as well as the bank.
 
Third, Political influence has been reducing the impact of a sound system ever since, and even in the banking sector, such power has resulted in the capital being accumulated with the capitalists. 
 
Fixing such issues is possible through profound root change in the system, and amends should be made for the same. Reforms should be introduced in a way so that it creates a distance between the management board of the PSBs with the central government. Also, RBI should work through the recent setbacks and help the IBC to be on its feet, back again.