(FE)
Niti Aayog Vice Chairman Rajiv Kumar on Friday called for further reforms in banking sector after the recent recapitalisation and mergers, saying banks need autonomy and work at arm’s length from the government.
Speaking here at the India Economic Summit, Kumar also said the government must consider tapping capital markets and raise long- term funds for creating long-term assets through routes such as sovereign bonds and not only look at banking sector for financing infrastructure development.
“I think that the next focus will have to be on governance reforms in a very major way, governance reforms in the banking sector particularly because that is needed,” Kumar said. He further said already there have been several committees looking into that. “Time has come…along with this round of latest recapitalisation and mergers, you do make sure that banks are now governed, managed and bank boards etc get the autonomy at arm’s length distance from the government,” Kumar said.
