{"id":5330,"date":"2020-01-01T15:03:28","date_gmt":"2020-01-01T09:33:28","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=5330"},"modified":"2020-01-01T15:03:28","modified_gmt":"2020-01-01T09:33:28","slug":"role-of-3cs-for-maintaining-countrys-economy","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/role-of-3cs-for-maintaining-countrys-economy\/","title":{"rendered":"Role of 3Cs for maintaining country\u2019s economy"},"content":{"rendered":"<p><strong>Relevance: Mains: G.S paper III: Economy<\/strong><\/p>\n<p><strong>Three dreaded Cs:<\/strong><\/p>\n<ul>\n<li>IT is a reflection of the state of the Indian banking industry today, specially state-owned banks which dominate the landscape and are marked by a virtual freeze in lending, that the country\u2019s finance minister had to reach out to bankers to assure them that they need not fear the three dreaded Cs \u2014 Central Bureau of Investigation, Central Vigilance Commission and Comptroller and Auditor General.<br \/>\n\u2022 Nirmala Sitharaman while conceding that decision-making in banks was getting impacted because of the fear of the 3Cs attempted to assuage the apprehensions, saying that the government and its investigative agencies have put in place measures to address their concerns.<\/li>\n<\/ul>\n<p><strong>Overzealousness of state agencies:<\/strong><\/p>\n<ul>\n<li>In early 2019 Sitharaman had cautioned against the overzealousness of state agencies, warning of the dangers of the banking system grinding to a halt.<br \/>\n\u2022 The Indian Banks Association, too, had protested a while ago after senior officials of the Bank of Maharashtra were arrested by the state police and following several cases dating back a decade or more being filed by agencies.<br \/>\n\u2022 Former Prime Minister Manmohan Singh has blamed what he termed as the \u201cmalafide unless proven otherwise\u201d doctrine of governance of the NDA Government for the breakdown of trust between institutions and the government.<br \/>\n\u2022 Bankers may tend to agree, especially when basic questions such as the definition of a bonafide decision and who should sit in judgement on loan approvals granted by banks years ago remain unclear even now.<\/li>\n<\/ul>\n<p><strong>Steps needed:<\/strong><\/p>\n<ul>\n<li>An enduring solution requires a significant lowering of state holding by the government in scores of banks well below the threshold of 51 per cent to free bankers from the purview of the three Cs, or privatisation.<br \/>\n\u2022 A government with a strong mandate like the Modi-led NDA 2 hasn\u2019t signalled so far that it has the desire or the appetite to go down that road.<br \/>\n\u2022 The second best but sub-optimal solution would be to empower bankers and professional bank boards to decide on whether a decision to approve a loan was bonafide or malafide.<br \/>\n\u2022 It is a fact that the seeds of the current mess in Indian banking were sown during UPA 2 but that doesn\u2019t absolve the Modi government which was late in addressing the crisis during its first term.<br \/>\n\u2022 The perceived morality play reflected in punishing so-called rogue bankers and businessmen a political response to Rahul Gandhi\u2019s suit boot sarkar jibe has already hurt banking and industry.<\/li>\n<\/ul>\n<p><strong>Conclusion:<\/strong><\/p>\n<ul>\n<li>With India set to end the fiscal with a multi-decade low in bank credit, the longer the government takes to unveil a roadmap and walk the talk to boost the confidence of bankers, the more elusive will be the economic recovery.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Mains: G.S paper III: Economy Three dreaded Cs: IT is a reflection of the state of the Indian banking<\/p>\n","protected":false},"author":1,"featured_media":3299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42,43],"tags":[392],"class_list":["post-5330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=5330"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5330\/revisions"}],"predecessor-version":[{"id":5331,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5330\/revisions\/5331"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3299"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=5330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=5330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=5330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}