DMPQ- Write down the recommendation of P J nayak committee on banking reforms.

In nationalised banks, the government owns more than 50% of the shares, which gives it majority voting rights. Because of this, the government can interfere in the boards of such banks and appoint inefficient people to the boards. That is, the appointment of the members might not always be based on merit. This will lead to overall efficiency and scams such as the Syndicate Bank scam.

PJ Nayak Committee Recommendations

  1. Repeal the Bank Nationalisation Act (1970, 1980), the SBI Act and the SBI Subsidiaries Act. This is because these acts require the government to have above 50% share in the banks.
  2. After the above acts are repealed, the government should set up a Bank Investment Company (BIC) as a holding company or a core investment company.
  3. The government to transfer its share in the banks to this BIC. Thus, the BIC would become the parent holding company of all these national banks, which would become subsidiaries. As a result of this, all the PSBs (public sector banks) would become ‘limited’ banks. BIC will be autonomous and have the power to appoint the Board of Directors and make other policy decisions.
  4. Until the BIC is formed, a temporary body called the Bank Boards Bureau (BBB) will be formed to do the functions of the BIC. Once BIC is formed, the BBB will be dissolved.
  5. The BBB will advice on appointments to the board, banks’ chairman and other executive directors.

 

Our APPSC Notes Courses

PDF Notes for Prelims Exam

Printed Notes for Prelims Exam

Mock Test Series for Prelims Exam

PDF Notes for Mains Exam

Printed Notes for Mains Exam

Mock Test Series for Mains Exam

Daily Mains Answer Writing Program

JKPSC Mains Exam

JKPSC Prelims Exam

Admit Card

Syllabus & Exam Pattern

Previous Year Papers

Eligibility Criteria

Results

Answer Key

Cut Off

Recommended Books

Exam Analysis

Posts under APPSC

Score Card

Apply Online

Selection Process

Exam Dates

Exam Highlights

Notifications

Vacancies

Exam Pattern

Prelims Syllabus

Mains Syllabus

Study Notes

Application Form

Expected Cut-Off

Salary & Benefits

Mock Tests

Preparation Tips

Study Plan

Jammu & Kashmir Administrative Service (JKAS)

Jammu & Kashmir Police Service (JKPS)

Jammu & Kashmir Accounts Service (JKAS - Accounts)

Jammu & Kashmir Civil Service (Judicial)

Medical Officer (Allopathy)

Veterinary Assistant Surgeon

Assistant Engineer (Civil)

Assistant Engineer (Mechanical)

Assistant Engineer (Electrical)

Assistant Conservator of Forest (ACF)

Range Officer (Wildlife)

Range Officer (Territorial)

Range Officer (Soil Conservation)

Assistant Director (Statistics)

Statistical Officer

Assistant Professor (Various Subjects)

Lecturer (School Education)

Assistant Engineer (Accounts)

Executive Engineer (Accounts)

Excise and Taxation Officer

Excise and Taxation Inspector

Excise and Taxation Sub-Inspector

Revenue Service (Executive)

KAS Probationers

Subordinate Accounts Course (SAC-I)

Subordinate Accounts Course (SAC-II)

Accounts Clerk Course (ACC)

IAS Probationers

Labour Inspector/Officer

Junior Statistical Assistant Course

Statistical Assistant Course

error: Content is protected !!