We still do not know what happened at the banking conclave…or the ‘Gyaan Sangam. Hopefully some manthan must have happened and some amrut may have flown…

What he spoke at the Icici function was

1. use cashless transactions – that will reduce black money.

Fantastic. Since Na Mo cannot bring back that small amount lying there…he says if we buy petrol and groceries using our debit card, black money will go down.

2. Instead of gold, people should keep money in banks.

Banks will lend it to Adag, JPA, Bhushan steel, Mallaya or invest it through Harshad Mehta or Ketan Parikh.

Obviously to the consumer it does not matter, because he is being given a guarantee by the President of India….but the money is lost. The NPA level is not encouraging…nor is the ULIP sale (through banking channels) a good investment for the investor….so what does he do?

Is NaMo serious about banking reforms?

Create 5 banks which will lend only to the top 200 companies. If they have to invest in equities it has to be in the top 200 companies -or make it the top 100.

Reduce the number of banks. Get good auditors by creating an auditor appointing panel – too much of incest is happening there.

Be careful…it is not easy Na Mo. These sharks have been around far longer than you have been….these guys are dangerous.

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  1. That was brave note. Pl explain more on How Bank based subsidy and spending will arrest black money.
    Now a days, all TN school students are forced to open account in Indian Overseas bank for getting their scholarship money. Prevously they used to give in cheque.certainly this 100 days employment program based accounts, scholarship accounts, LPG based accounts will be equivalent to dormant accounts for majority of population, it will increase the bank overhead in big manner.

  2. What ever you have said makes lot of sense. But I want to say that there is someone valiant enough to rise and make an attempt for a bold change. All these years we were seeing damp squib initiatives without any zest. Consolidation among the Banking sector was a very good idea but presided over by very timid people. Chidu said that he wanted the Boards of the Banks to come up with such proposals. CMDS etc are mere babus in the Public Sector, who have risen the ladder more through sycophancy rather than merit exceptions nothwithstanding. A strong leader or a Govt does not need to say all these things but just order. Modi ordered these Babus to travel by Bus from Mumbai to Pune and asked them to stay in NIBM hostel.
    That is what is required.
    Hoping to see the change and for the better as I am an optimist out and out.

  3. having lived in NZ for a long time, I can vouch for the first para. Using a debit card for every transaction even if it is buying a loaf of bread, GST is collected. The shopkeepers preferred cash as they need not report it and save GST.
    India needs such a facility. The card should have no charges or number of transactions limit. I never had to carry more than 20/30 NZD in my wallet.

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