Niti Aayog recommends privatisation of 3 PSU banks amongst other reforms in the financial sector

NITI Aayog on Friday has recommended the government to privatise Punjab & Sind Bank, UCO Bank and Bank of Maharashtra. The recommendation was made by the government think tank in a presentation to Prime Minister's Office (PMO) and union finance ministry functionaries.

Privatisation of Punjab & Sind Bank, UCO Bank and Bank of Maharashtra will require an amendment to Banking Companies (Acquisition and Transfer) Act of 1970. Similarly, for utilising department of postal office outlets, the suggestion from the government think tank is to merge all regional rural banks and use the network of over 15 lakh postal outlets.

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Sources have told CNBC-TV18 that the body has also suggested bringing in flexibility for non-banking financial companies (NBFCs) participation in the bond markets and need to increase private debt to GDP ratio from the current 54 percent to 100 percent in the next 10 years.

The other interesting suggestion given by NITI Aayog is to make Indian data credible and coherent, it has suggested speedy implementation of Data Accountability And Transparency Act recommended by Comptroller and Auditor General (CAG) and also to revamp Ministry of Statistics and Programme Implementation (MoSPI) which generates key economic data. These are suggestion given by the body, a final decision will rest only with the union finance ministry.