Also, it has reportedly forced the government to revisit its plans of setting up a bank-holding company. The holding company, first proposed by Jaitley in 2015-16 Budget, was scheduled to hold the government shares in PSBs and raise capital for them. The government set up Banks Board Bureau (BBB) in February 2016 as a precursor to a bank-holding company. The holding company is supposed to be run by bankers, and without any interference from their political masters and bureaucrats. While the formation of a holding company will not outright privatise PSBs, it will definitely help the government ride out of the criticism arising out of the latest banking frauds.

Source: dna February 27, 2018 00:29 UTC