UPSC CSE MAINS SYLLABUS – UPSC CSE MAINS SYLLABUS – GS – 3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Corporate Houses – Banks

The NITI Aayog CEO lamented recently that India’s private credit-to-GDP ratio is the lowest amongst global peers.

According to BIS 2019 statistics, credit to the non-financial sector as a percentage of GDP stands at 56% in India, as against 150% and 205% in the US and China, respectively. The MSME credit needs are largely unmet by the formal financial sector, leading to an estimated MSME credit gap at Rs 25 lakh crore.

RBI, in September 2020, actively updated/reclassified priority sector norms and MSME definition to enable better credit penetration by banks. Yet we need an all hands-on-deck approach to satisfy latent credit needs of the MSME network encompassing the government, regulators and industry.

The importance of RBI Internal Working Group (IWG) recommendations:

What is needed:

Unethical practices in any bank have to be punished with a heavy hand as integrity and probity are paramount in banking. Strong legal action initiated recently for financing frauds and resultant NPAs in the banking system needs to be taken to a logical conclusion.

Source:”Financial Express”.


Before allowing corporate houses to own banks certain precautionary measures has to be in place. Substantiate.