Unfortunately for you - Yes.
Thank you for enlightening us about the grand conspiracy of demonetization to 'save' the Banks. While the policy makers targeted a range of benefits that have been clearly listed out by the Chief Economic Advisor of GoI as well as the Prime Minister, you as Pakistani(
known globally for their expertise in financial sector) are here to tell us the 'real reason'.
And ofcourse , you are using that expertise to tell us that Indian Banking system is failing -
Its also one of the reasons why the single largest Bank in India (by a gigantic margin) has its stock rising nearly 60% in this last one year.
So thankyou!
Thank you for the noticeable intellectual relief from ignorance the chap who posted above.
The Commercial Bank laws in India till recently were ridiculously bad. Till 2014 our Banks were basically ineffectual against any kind of fraud being perpetuated against them because the
entire legal system was designed to protect the borrowers
at all costs.
Over a space of the last 2.5 years, there have been multiple reforms in the Banking sector driven by the Parliament as well as the RBI which has almost completely overhauled the sector.
The high point of these changes are - Bank Boards Bureau reform, the Bankruptcy Act, Arbitration Act, Negotiable Instruments Act.
Basically almost everything has been done in the last 2 years only. All this in addition to massively expanding the scope of banking to bring even the poorest of Indians to the banking sector. Over
250 million bank accounts have been opened in just the last 2 years!
Fortunately our Reserve Bank has also been active and introduced quite a competition in a moribund sector.
As luck would have it, I have an article that was featured today itself.
http://www.business-standard.com/ar...erging-markets-chris-wood-117051200128_1.html