Drain of Wealth: Should Tax-Payer money be used to ‘re-capitalize’ public banks?
On 24 October, Arun Jaitley announced a recapitalisation plan of 2.11 trillion rupees for public sector banks as a response to the dangerously piling NPAs. Touted as a "bold and courageous" step, the most expensive bank bailout in the nation's history follows a long tradition of capital infusion into sick PSBs over the past decade (with no results to show). But is this the much-desired remedy that diagnoses the maladies of the banking sector today?
More importantly, should taxpayer money have to compensate for institutional failures and unaccountable bureaucracy? Watch the video to know more.