Posted in Banks, Common Man, Corruption, Democracy, Financial Institutions, Financial Risk, Frauds, Government, Hindustan, India, Management Lessons, Politics, RBI, Slogging, System

Bailout packages to revive the economy – How far justifiable? – Part 2

In the month of October 2017, the present Indian Government announced a bailout package of Rs. 2.11 Lakh Crores for the Public Sector Banks, majorly to help them recover from the current situation of growing number of Non-Performing Assets (NPA’s). In response to this step taken by the government, as an awakened citizen, I wrote the first part of this blog, dated 28th October 2017, questioning the justifiability of the bailout packages being granted by the Government at the time of recession, especially to the organised sectors like Finance and Real-Estate.

Now, after almost 5 months, the Central Government finally got awakened and realized that blindly issuing bailout packages is not at all justifiable and helps in no way to revive the economy. As per the newspaper report published, on dated 04th April 2018, an officer of the Finance Ministry has been reported saying that the Central Government won’t be granting any bailout packages to the Public Sector Banks, henceforth. Banks have been advised to arrange funds on their own, either by selling their NPA’s or else by merging the banks. (Reference: Article published, on dated 04th April 2018, in Rajasthan Patrika, the Daily Hindi Newspaper).

The above statement, actually validates my views expressed in the following paragraph extracted from the first part of this Blog “Bailout packages to revive the economy – How far justifiable?” – “As it is, the organised sectors are run by professionals, so they are in a far better position to come out of losses incurred by them on account of bad management decisions than the unorganised sectors which mostly incur losses on account of reasons out of their control like natural calamities. Only when the bailout packages are issued to all those who are in die-hard need it will be able to revive the economy as a whole and would be justifiable, not otherwise.”

As it is said that “Better Late than Never”, so it’s good to know that the government has at least started thinking on this line. Although it’s a welcome step from the Central Government, however, at the same time, we should also keep it in mind that it’s just a claim made by one of the officers of the Finance Ministry. Hence, we better wait and watch to witness if it actually gets implemented by the Central Government in the right spirit or not.

To be very honest, it’s easier said than done, especially, due to the fact that time and again there is news of the involvement of some of the well-known politicians/personalities or their close ones in the defaults pertaining to big-ticket size loan. Hence, it would actually not be an easy step for the government. Let’s see, if in this case, it’s the Public Interest that takes precedence over the Private Interest of the chosen few or not.

I do hope that the Government and the Finance Ministry takes every measure to implement this thoughtful decision in its true spirit, which in turn will surely benefit the economy, as a whole. Until the time government takes such strong steps, the wilful defaulters are going to enjoy their leisurely time, after absconding with the hard-earned money of the common man. It’s a high time for the Government and the Reserve Bank of India (RBI) to tighten up the controls and close the loopholes present in the system.

Stay in touch.

God Bless!

 

Peyush Jain

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Author:

A writer at heart and creative at art. Someone who wants his words to leave an impact. Someone who is hungry for genuine feedback and not the number of likes. The thought behind my writing has always been to revolutionize the thought process which is overpowered with the set obsolete parameters, as well as, to bring into life, a new perspective towards everything around us. When I am penning down these lines, the beautiful composition by Mr. Dushyant Kumar Tyagi strikes my mind, "Sirf hungama khada karna mera maksad nahi, Meri koshish hai ki yeh soorat badalni chahiye; Merey seeney mein nahi to terey seeney mein sahi, Ho kahin bhi aag lekin aag jalni chahiye". The meaning of this verse (in my words) is that - My only motive is not of rabble-rousing, but my efforts are directed towards bringing about a change; I want the fire of awareness to lit somewhere, if not in my heart then maybe in yours, but the fire has to lit. Readers are a writer’s strength and one of the motivating factors that keep the writer always alive. All the honest readers are undoubtedly the unbiased mirror of a writer’s content. Hope the readers like my blogs and could correlate with them. It will be an honour if the readers are able to gain something worth from my write ups. At the same time, it will be my pleasure to know your honest views. Each and every single feedback is highly appreciated. So do not hesitate to comment with utmost truth in your words. Keep reading and keep learning. I wish you all a very healthy, happy and a prosperous life. Love to all. Be in touch. Take care and God Bless!

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