Economic Survey 2019 - 20 ( volume 1 , Chapter 7)

The Indian banking system is
currently sub-scale compared to the size
of the economy. A large economy needs an
efficient banking sector to support its growth.
Historically, in the last 50 years, the top-five
economies have always been ably supported
by their banks. Should India’s banks play
a role proportionate to its economic size,
India should have six banks in the top 100.
As PSBs account for 70 per cent of the
market share in Indian banking, the onus of
supporting the Indian economy and fostering
its economic development falls on them. Yet,
on every performance parameter, PSBs are
inefficient compared to their peer groups.
Previously, the Narasimhan Committee
(1991, 1997), Rajan Committee (2007) and
P J Nayak Committee (2014) have provided
several suggestions to enhance the efficiency
of PSBs. The survey suggests use of FinTech
(Financial Technology) across all banking
functions and employee stock ownership
across all levels to enhance efficiencies in
PSBs. These will make PSBs more efficient
so that they are able to adeptly support the
nation in its march towards being a $5 trillion
economy. All these recommendations need to
be seriously considered and a definite, timebound
plan of action drawn up. With the
cleaning up of the banking system and the
necessary legal framework such as the IBC,
the banking system must focus on scaling up
efficiently to support the economy #ECONOMICSURVEY2020 #UPSC

[UPSCEcho]

At 4.54 it’s France not japan, pardon for the slip of tongue ..

So India surpassed France to become 5th largest economy . ( it’s not written in the economic survey, it’s something I had read in newspaper)