Mission Indradhanush was proposed by Finance Ministry on the recommendation of the P.J Nayak committee report. The term Indradhanush is mainly used because it has seven objectives. Since, the objectives start with letter A and end at letter G, it also known as A to G banking sector reform. The objectives of the mission Indradhanush are as followed-
Appointment refers to making the top level recruitment more transparent and effective. At present, the public sector bank is headed by CMD(Chairman & Managing Director) both these positions is held by single individual. It has been decided to divide the post of CMD and separate appoinments will be made to it. A third position will be created which will be of non chairman executive. On these positions the recruitment can also be outside from the bank.
On 1st April,2016 the Bank Board of Bureau was created by the Government. It was created to make the top level recruitments more transparent and to prevent the inter fence of the government. It has seven members including the chairman and the first chairman of the bureau is Vinod Rai.
Capitalisation means providing additional capital or fund to public sector bank in order to fulfill the Basel norms. The banks in India needs additional fund till 31st March,2019. Hence, in order to meet the requirements of public sector banks the government will infuse an amount of 50000 crore rupees.
Destressing means reducing the stress of the public sector banks. The NPA(Non Performing Asset) of public sector banks. The NPA of the banks has continuously increased which has become a concerned for the banks and the banks are not able to meet the demands of loans. Therefore it has been decided that more and more NPAs of the bank will be sold to ARCS(Asset Reconstruction Companies). For the same purpose the concept of bad banks and PARA(Public Sector Asset Rehabilitation Agency) has been proposed.
Empowerment refers to making the bank more autonomous. They will be set free by the government with respect to middle and lower level recruitment.
Framework of Accountability means the process of banking has to be made more transparent for any decision making somebody has to be made answerable. It will make the officials more responsible.
Here, Governance reforms refers to ensuring good governance in response to banking system. For this purpose Gyan Sangam is being organised every year in which the Prime Minister,Finance Minister,Governor of RBI and CMD of all the public sector banks will participate. The first Gyan Sangam was held at Pune in year 2015, the second was held at Gurugram in 2016 and third was held at Delhi 2017. The objective of this year gyan sangam was to enable two way communication between policy makers and senior officials of the field with the view to increase the revenue collection and facilitate effective implementation of laws and policies in key result ares.
Capitalisation means providing additional capital or fund to public sector bank in order to fulfill the Basel norms. The banks in India needs additional fund till 31st March,2019. Hence, in order to meet the requirements of public sector banks the government will infuse an amount of 50000 crore rupees.
Destressing means reducing the stress of the public sector banks. The NPA(Non Performing Asset) of public sector banks. The NPA of the banks has continuously increased which has become a concerned for the banks and the banks are not able to meet the demands of loans. Therefore it has been decided that more and more NPAs of the bank will be sold to ARCS(Asset Reconstruction Companies). For the same purpose the concept of bad banks and PARA(Public Sector Asset Rehabilitation Agency) has been proposed.
Empowerment refers to making the bank more autonomous. They will be set free by the government with respect to middle and lower level recruitment.
Framework of Accountability means the process of banking has to be made more transparent for any decision making somebody has to be made answerable. It will make the officials more responsible.
Here, Governance reforms refers to ensuring good governance in response to banking system. For this purpose Gyan Sangam is being organised every year in which the Prime Minister,Finance Minister,Governor of RBI and CMD of all the public sector banks will participate. The first Gyan Sangam was held at Pune in year 2015, the second was held at Gurugram in 2016 and third was held at Delhi 2017. The objective of this year gyan sangam was to enable two way communication between policy makers and senior officials of the field with the view to increase the revenue collection and facilitate effective implementation of laws and policies in key result ares.
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