Privatising all the Public Sector banks is not the remedy - says Raghuram Rajan, former Governor of the Reserve Bank of India.

At a time when the government is taking all possible steps to make the Public Sector banks sick, so that they can be privatised easily thereafter, former Governor of the Reserve Bank of India, Raghuram Rajan, has stated that privatising all the Public Sector banks is not the remedy. This is reported in today’s The Hindu. What he says to bring the banking sector out of the crisis, is also applicable to BSNL. The government of the day is taking all out steps to make BSNL sick, with the ultimate aim of privatising it. The corporates and their media are also making loud noises that, BSNL should be privatised. To this, Raghuram Rajan says that ownership is just one issue. But, he says that, governance and transparency are the important issues. For BSNL, it’s main problem is the governance. The DoT is not allowing BSNL Management to function independently. For each and every small thing, BSNL Management has to get approval from the DoT. For example, even for taking bank loans. Raghuram Rajan says that the government should reduce the number of mandates that the government is giving to the Public Sector banks. This is applicable to BSNL also. The DoT should stop giving dictates to BSNL and allow it to function freely.