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Indian Economy’s Achilles Heel continues to be the NPAs of the Public Sector Banks. The way to tackle this problem is to : 1) Remove PSU Banks from Finance Ministry supervision to a holding company structure. 2) Address issues of PSU Bank Management & NPAs. Make PSU Bank Boards responsible for NPAs and willful defaulters. Create a New Law to track down assets of willful defaulters and big businesses. 3) Address the issue of concentration of risk and loans to top 10 groups and reform the CDR mechanism
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