Saturday, March 2nd, 2024

Raghuram Rajan showed red flag regarding old pension scheme, said these big things


Photo: File Raghuram Rajan

many state governments has shown intention to go back to the old pension scheme. On this, former RBI Governor Raghuram Rajan said that by doing this government expenditure will be reduced, but the liabilities for the future may increase. He has cautioned banks on too much inclination towards retail lending. In an interview to an online portal on the sidelines of the World Economic Forum (WEF) in Davos, Rajan said the new pension scheme was adopted because the old scheme had huge liabilities.

These states restored the old pension scheme

He further said that it is easier for governments to adopt defined benefit plans as liabilities are not being recognized. Many state governments like Rajasthan, Chhattisgarh and Punjab have adopted the old pension scheme, including Himachal Pradesh. Rajan further said in the interview that although it is for each state government to decide, these schemes should be effectively targeted towards the weaker sections of the society, so that they can get the benefits.

Banks were also warned

The former RBI governor also cautioned Indian banks against their shift towards retail lending during the interview, as he said there could be potential risks in case of a recession. Rajan’s comments come at a time when Indian banks have seen a huge jump in retail assets as compared to wholesale loans. In the interview, he was quoted as saying that banks should examine all the risks involved in infrastructure lending. The former banker said that between 2007 and 2009, the RBI moved towards infrastructure loans, though problems cropped up later.

Latest Business News



Source Link

Whatsapp GroupJoin
Telegram channelJoin

World Bank became a fan of India before G20, praises Modi government fiercely

New Delhi : G20 Sherpa Amitabh Kant said on Friday that one of the important things about the chairmanship of the summit in India is that the world recognizes that India has really revolutionized...

Stock market enthusiasm high for second consecutive day, Sensex jumps 241 points

Photo:PIXABAY stock market Both the indices of the stock market registered gains on Monday due to encouraging macro economic data at the domestic level amid a strong trend in the international market. That is,...

After WhatsApp, now a big hacker attack on Twitter, data of 54 lakh users stolen by hackers

Photo: AP Twitter WhatsApp After the hacker has launched a major attack on Twitter. According to the information received, the data of at least 5.4 million i.e. 54 lakh Twitter users has been stolen...