Why ULIP mis-selling has become rampant ?

Principal Economic Adviser Sanjeev Sanyal defended the government’s privatisation agenda, saying that most of the public sector undertakings (PSUs) that the government plans to sell were actually formed by the private sector.

“You (the opposition) stated that this (the PSUs) was constructed with the blood and sweat of the public sector. So, let me clear the air, most of what we’re proposing to privatise was established by the private sector.” He used the example of Air India, which he said was taken from the private sector and nationalised in 1953.

“Banks were simply nationalised in 1969. So, when people suggest that these institutions were established with the blood and sweat of the Indian bureaucracy, I’d like to point out that they were built by private corporations in the first place ” he added.

Finance Minister Nirmala Sitharaman has already identified strategic and non-strategic industries for privatisation he added. He pointed out that the government will only have a little participation in the sector.

He also stated that the administration will not hesitate to create new public sector entities if necessary.

He cited the government’s recent creation of the National Bank for Financing Infrastructure and Development (NaBFID) as an example of the establishment of a development finance institution (DFI).

“There are a number of reasons why you might wish to do so…the fact of the matter is that private sector banking has its own set of issues. We’ve seen some examples, such as Yes Bank and others. As a result, this is a field in which you must have a public presence “he stated

Many countries have kept some public banking institutions, or even had to nationalise as a result of the global financial crisis, he said.

Yes Bank was placed under a moratorium last year, and its board was also replaced. Several agencies are looking into the former management’s fraud.