Govt must give up majority control of public sector banks

The Reserve Bank of India (RBI) and the government have often been at loggerheads about state-owned banks. As the chief shareholder in these public sector banks, the government has often sent diktats to them in furtherance of their larger economic policy. The RBI, however, as the regulator for the banking sector, does not always see these instructions as useful for the sector - and, in any case, resents what it sees as overstepping into its domain.

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