Few months back there is an analysis on the status of Banks in India. The thrust of that story is that ‘Banks are in dole drums. NPAs rosed to its peaks. Insolvency problem increased. Profits gone down. Government of India share in banks reduced further. Govts budget provision of 39,000 crores for banks recapitalisation is unable to fill the gap. Central Govt needs to pump more funds to banks to serve better’… goes on like this.
When we see the demonetisation in this background, Govts agenda seems something else than curbibg black money. RSS ideologue, economist Gurumurthy confirmed on record that Govt is worried at the quantum of cash economy. It must be reduced numetically. GDP, cash economy ratio is not in healthy proportion, he said.
NDA’s drive to people towards cashless economy is not yielding results. Jandhan Yojana could accounts but not enough funds in them. Indian economy traditionally addicted to non bank savings. People keep saving in the shape of gold, copper or hard cash on hand. That saved Indian economy most of the crisis times. NDA Govt wants to cripple that savings and drive the people to banks.
Why should people believe banks?
Banks never gave confidence that they will serve the ordinary customer. Their NPA’s never downtrended in the recent history. NPA’ rose to 5,94,000 crores. During NDAs rule itself 2,00,000 crores NPA’ puled up. What is the guarantee to ordinary customers savings, when this phenomena is growing on unchecked?