Which initiative was launched by Arun Jaitley to revamp functioning of PSBs?
Q. Name the initiative launched by the Finance Minister Arun Jaitely to revamp functioning of public sector banks, PSBs on 14th Aug’15?- Published on 07 Feb 17a. Seven Plan
b. Maulik Niti
c. BankNiti
d. Indradhanush
ANSWER: Indradhanush
Indradhanush is a seven pronged plan that includes appointments, capitalization, de-stressing PSBs, empowerment, framework of accountability and governance reforms.
It seeks to achieve the objective of economic growth revival through improving credit and minimizing the political interference in the functioning of PSBs.
Appointments : Appointing MD & CEO of PSBs as early as possible.
Bank Board Bureau (BBB) : It will be a body of ’eminent’ professionals to be selected within 6 months. It will become functional from Financial year 2016-17 i.e. form 1st April 2016.
Capitalization : Infuse 25,000 crore rupees of capital into debt-laden banks in this fiscal in phased manner.
Out of this 20,000 crore rupees would be injected in August 2015.
Rest 5,000 crore rupees will be performance based allocation to be allocated in the last quarter of 2016.
De-stressing PSBs : To develop vibrant debt market for PSBs in order to reduce lending pressure on banks. Strengthen asset reconstruction of companies.
Empowerment : Provide greater flexibility in hiring of manpower in PSBs.
Framework of accountability : It will seek to streamline vigilance process for quick action in case major frauds and also include connivance of staff.
Governance reforms in PSBs : Employee Stock Option Plan (ESOP) will be initiated for top management.
