New Delhi: Prime Minister Narendra Modi will interact with bankers in a first of its kind two-day retreat to be held in Pune between 2 and 3 January, as the government looks to evolve a blueprint for banking sector reforms as well as look at consolidation in the sector.

“The government of India is conscious of the fact that banking sector, particularly public sector banks require some major reforms. While the major points of reform are being discussed on many occasions, the fine print of reforms needs to be outlined. It is important that all the stake holders come together and prepare the outline of such a blue print," the finance ministry said in a press statement.

The retreat will also be attended by finance minister Arun Jaitley, Reserve Bank of India (RBI) governor Raghuram Rajan, finance secretary Rajiv Mehrishi, secretary, department of financial services Hasmukh Adhia and chiefs of all major public sector banks.

The government will look to achieve a broad consensus on what has gone wrong and what should be done both by banks as well as the government to improve and consolidate the position of state-run banks. It will also look to prepare a blueprint for reforms and an action plan which, once it is adopted, could be implemented by the banks as well as by the government.

In addition, consolidation and re-structuring of state-run banks for better efficiency and capitalisation needs as well as better recovery mechanisms will also be discussed.

Other issues that will be discussed include those related to human resources, technology and financial inclusion.

With the arrest of S.K. Jain, who was heading Syndicate Bank, in a bribe for loan scam, the scrutiny on governance practices in state-run banks has increased with calls for a more transparent appointment procedure for chiefs of such banks as well as appointments of more qualified independent directors.

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