Group Discussion: "Privatisation of banks is desirable."

"Privatisation of banks is desirable."


FOR
1. Privatisation of banks will lead to healthy competition, cost consciousness and greater attention to depositors' interests. It will play a crucial role in the development of the Indian economy into a global giant.

2. Banks will become customer service-oriented.

3. Accountability in private organisations will lead to more efficiency and responsibility, which would mean higher returns and lower costs to customers.

4. Special customer-grievances' cells would be set up to handle customer complaints in an effective manner, and customer-oriented schemes will be introduced.

AGAINST
1. Privatisation of banks will not prove to be advantageous regarding efficiency of banks. There are many private organisations that are in the red.

2. Various banking reforms have resulted in increase of profits in a number of public sector banks. Loss-making ones (prior to nationalization), are also making profit.

3. The appointment of eight ombudsmen under the banking ombudsman scheme has helped resolve customer grievances in a quick and inexpensive manner.

4.  The finance ministry has appreciated the fact that the public sector banks have managed to adjust with ease to the new liberalised scenario. Profits of public sector banks are used towards the nation's priorities. This will not happen with private profits.