- Indradhanush is a Strategy unveiled by Modi government to facelift Public Sector Banks which play a vital role in a countries economy.
- Under the guidance of Bank Board Bureau, umbrella structure will guide policy, functioning and appointments Private sector executives will run Public sectors lenders
De-stressing bloated lenders
Stock Options and Cleaning up governance
In the following areas Indradhanush brings systemic changes
Government started hiring private sector executives to run State owned Banks.
It appointed Rakesh Sharma, head of private sector lender Lakshmi Vilas Bank, as chief executive of Canara Bank and PS Jayakumar, chief executive of real estate developer VBHC Value Homes, has been named head of Bank of Baroda.
It want to strengthen debt recovery tribunals and want to strengthen risk controls and NPA disclosures.
Rs. 70,000 crore capitalization plan is announced by the government which includes an infusion of Rs 25,000 crore in the current financial year.
Accountability incentives with higher rewards
A new key performance indicators is announced by government for state-run lenders to improve effectiveness in functioning without disturbing the independence of decision making.