The government of India should immediately take over all the NPAs from Nationalised banks. There is a huge risk of politically being accused of corrupt, but it is much better than the collapse of Indian banking system, a catastrophic consequence of piling up NPAs: the result of nepotism of previous governments and world economic problems. The Banks should be given equivalent bonds to start afresh. Since 1992 the biggest tragedy of Indian banks was the NPAs they inherit year after year. Most of their resources and efforts have always gone into even out this problem and not giving enough room for productive investments.
Thereafter Government should start a debt recovery board to recover those loans and allow banks to redeem their bonds.
For demonetisation, a reckless thinking was enough, but this action requires a decisive leadership and hope the government does that.
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