Government Plans to Defuse Ticking Bank Bomb

NITI Aayog meet Grapples with Farm Sector Woes
  • With the bad loan crisis casting a shadow on the ability of banks to lend, the Prime Minister’s office is deliberating a proposal to set up an asset reconstruction company with equity contribution from government and RBI.
  • It is learnt that Union Finance Ministry and Niti Aayog have separately pitched for ‘taking the tumour out’ of the banking system.
  • This will make balance sheets look better and will enable banks to meet the growing needs of the economy.