It was introduced into India by the Mughals and widely used since then.
Indradhanush plan also had provisions to ensure various administrative reforms in PSB.
Earlier it was thought that PSBs will requires Rs. So, Government will give Rs. This meant Government will have to bear greater share of recapitalization burden. In OctoberModi Government announce Rs.
The fact that FinMin bureaucrates didnot give Sansktriized name for this project to please PM Modi… it shows how much serious and emerency this task was for them! As we learned earlier, there are two ways to arrange capital: PSBs will sell Rs. Then next question is how will Government arrange this amount?
Government will give 18k crores from Budgetary support. Government will sell 1. But we need not bother with these figures for UPSC prelims. Bank recapitalization Bonds Rs. Government announced following features of the Bank-recapitalization bonds. These bonds will have interest rate of 7.
These bonds will be Non-transferable to third party i. These bonds will be non-convertible i. Now comes the question: Government then asks PSBs to issue new shares. However, critiques say PSBs will not generate sufficient dividend to finance entire interest payment.
This will increase fiscal deficit, unless Government cuts down Expenditures elsewhere. OR Government could then launch new bonds to repay interest on these old bonds!
This is called financial repression of the household, because they could have enjoy higher returns, had those Public-sector-Ffinancial Intermediaries invested their money in more lucrative avenues like relianceJio or Apple.November 21, Essay on bhagat singh pdf merge.
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