Nobel laureate Abhijit Banerjee bats for reducing Govt stake in banks

NEW DELHI: Nobel Laureate Abhijit Banerjee on Tuesday said the Government’s stake in public sector banks should be reduced to less than 50 per cent to take them out of the regulation framework of the Central Vigilance Commission (CVC).

Addressing a press conference here, Dr Banerjee criticised the CVC for its “inteference” with the public sector banks. “Check and balances are required but (the CVC) is spoiling and allowing a rot in public sector banks,” he said.

Amidst looming Punjab and Maharashtra Cooperative Bank crisis where the Reserve Bank of India (RBI) has put restrictions on depositors for withdrawal of their money, the distinguished economist said the banking crisis was frightening. “I think we should be vigilant about this and be able to stop it way ahead of time,” he said. (AGENCIES)