The MSMEs are always pampered by the government as they generate employment and helps in inclusive growth. But MSMEs pampered in the past could create assert quality issues in future.

Till now 12 banks are under the purview of PCA framework. 11 are public sector banks (PSB) and one is a private bank. Seven out of 12 banks have shown improvement after coming under the RBI's PCA list.

Both the government and the RBI can set up committees to lay down the policies for payment of surplus to government and also the adequacy of reserves to be kept or created out of surplus every year.

Close to a dozen public sector banks are under PCA framework, monitored by RBI with lending restriction till they nurse back to good health.

The RBI always has had its disagreements with the government, mostly in private and rarely in public, when it comes to its autonomy in setting the monetary policy, regulating banks, managing the rupee value in foreign exchange market, and even debt management function.

The lending environment is still challenging. The corporate are still to get into the expansion mode to borrow from banks.

The country's largest lender State Bank of India on Thursday said it is not in a position to acquire more banks at the moment as it needs 2-3 years to see gains from the consolidation effected last year.

These three state-run banks would work on strict timeline and necessary regulatory process is expected to be over by the end of 2018-19, sources said.

The BJP-led NDA government probably had the right intention when they knocked on the doors of Ravi Venkatesan, former chairman of Microsoft India and P S Jayakumar, an ex-citibanker turned entrepreneur, for helping them in conducting an experiment of sorts with Bank of Baroda.

Gender diversity is missing in large areas of the financial services industry. There is no easy way out.

The India Post Payments Bank will deliver door-to-door banking services in rural and far-flung areas, said PM Modi while launching the initiative.

According to the data, 159 branches of PSBs are operating in foreign countries, of which 41 branches were in losses in 2016-17. The country's largest lender State Bank of India (SBI) led the pack with nine of its overseas branches in the red.

This missive comes in the light of arrest of Bhushan Steels erstwhile promoter Neeraj Singal by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off funds.

IPPB will leverage reach of 1.55 lakh post office branches to provide banking and financial service to people in rural areas. This will create the country's largest banking network with direct presence at village level.

Gross NPAs have exceeded Rs 8.5 lakh crore, up 19% year-on-year, while total provision for NPAs jumped 28% (y-o-y) to Rs 51,500 crore.

BJP was seen as a party which opposed liberalisation or reforms. However, in his tenure as the prime minister, Atal Bihari Vajpayee emerged as more of a reformist.

Payout by RBI has shot up 63% year-on-year, but the finance ministry is not happy. The government believes that the payout ought to be higher so it has reportedly asked the apex bank to review its dividend and capital conservation rules.

The government has given signal to banks to try out yet another resolution approach, including AMC-AIF, for dealing with growing stressed assets. Will it work?

Prime Minister Narendra Modi on August 21 will launch long-awaited India Post Payments Bank (IPPB) that will have at least one branch in every district and focus on financial services in rural areas, a senior official said.