The article “Meddling with public sector banks” (Sept. 17) has well exposed the possibility of a hidden agenda in the government’s move of seeking a loan of $3 billion from the World Bank, when our foreign exchange reserves are as high as $265 billion. Such transactions go through because there is no meaningful political debate on vital issues within or outside Parliament. The public has a right to know if the proposed borrowing has the consent of the Reserve Bank of India.
The article makes interesting reading. When our foreign exchange reserves are sound, what is the rationale behind the government approaching the World Bank for a paltry sum of $3 billion to recapitalise the nationalised banks? It is strange that our leaders while agreeing, on the one hand, that the financial practices followed by India over the last decade have helped the country tide over the impact of global recession, on the other, seek to implement policies that are quite contradictory to their utterances.