After the case of Nirav Modi, India is taking emergency measures to prevent other scandals banking

A month after his first revelations, the matter Nirav Modi causes a shock wave in Indian politics. The acts alleged to be fraudulent by certain employees of the national Bank of Punjab (PNB), a public institution, raise, in effect, the debate on the privatization of many banks still controlled by the State, the rules of functioning of the private sector is deemed more serious. The government of the nationalist Narendra Modi, despite its tone, liberal in economic terms, there seems not willing. He has vowed to sell this year, the airline company Air India, it remains of extreme caution as regards the banking sector. And for good reason.

It is beset by a mountain of bad loans that have led New Delhi to put in place, in October 2017, a plan to rescue giant, equivalent to 2 110 billion rupees (26.5 billion euros). In this framework, the group, GNP would receive from the State an envelope of 688 million euros, in respect of bad and doubtful debts representing € 1.54 million. The scandal Nirav Modi arrives at the worst possible time, as it makes discover additional exposure of the bank of 1.6 billion euros. Taxpayers will have a hard time digesting that their taxes go to bail out an institution as little looking.

“The first is the State ”

This case also raises the question of the responsibility of the central bank, the Reserve Bank of India (RBI). “As a sector regulator, the latter will not be able to escape, but the first is the State, which owns GNP, and control of the RBI,” says Bishwajit Bhattacharyya, advocate of the supreme Court. “This scam has dealt a blow to Narendra Modi, who was deeply committed to freeing India from corruption “, underlines, in The Indian Express, political scientist Pratap Bhanu Mehta.

In the immediate future, the government…

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