Mission Indradhanush for PSBs

Mission Indradhanush is based on recommendations of P J Nayak Committee on the banking reforms.

The 7 components of the Mission (symbolic of 7 colours of the rainbow) plan to address the challenges faced by the Public Sector Banks. The 7 components include:

1. Appointments: Besides induction of talent from the Private Sector into the public banks, separation of the posts of Chief Executive Officer and the Managing Director, in order to check the excessive concentration of power and smooth functioning of the banks.
2. Bank Boards Bureau: The appointments Board of the Public Sector Banks would be replaced by the Bank Boards Bureau (BBB). The BBB separates the functioning of the PSBs from the government by acting as a middleman.
3. Capitalisation: Due to the high NPAs and the need to meet the provisions of the Basel III norms, capitalization of banks need to be planned.
4. De-stressing: Solving issues arising in the infrastructure sector in order to check the stressed assets in the banks by strengthening the asset reconstruction companies. Development of a vibrant debt market for PSBs.
5. Empowerment: Providing greater flexibility and autonomy to PSBs in hiring manpower.
6. Framework of Accountability: There are mainly two changes that are being made in this:
   1. A new arrangement of Key Performance Indicators (KPIs) to be evaluated for the execution of PSBs is being proclaimed.
   2. The remaining 20 marks are held for estimation of abstract criteria which consolidates essential activities.
7. Governance Reforms: Banker’s Retreat or the Gyan Sangam conferences between the bankers and the government officials for resolving the banking sector issues and deciding the future course of action.