recapitalisation of banks

  
the second biggest thing in the 2018 budget of govt of india is probably re capitalisation of banks. let us stand up and clap. finance minister is an economist and a genius.
the first place of course goes to modi care . the program to raise health of every indian citizen to international standards. and maintain it at that level .
clap ? not yet . there will be opportunities galore . at least till the next general election. nothing is going to happen till then. this red moon will shine bright in the horizon well past the election festival. directing , inviting, cajoling people to the promised land filled with electronic voting machines.
let's come back to re capitalisation of banks. what exactly is the need ? simple. becoz the capital which it had went down the drain. not exactly . went into the leaky pockets of a handful of our countrymen. in neat loan packets of a few thousand crores of rupees each . by a mechanism rechristened by our finance minister a few months back , as 'balance sheet adjustments'. till then it was known by the name 'write off' .
where do these funds that go into recapitalisation of banks come from ? from the tax that we the malleable citizens of this country pay . one of the many uses of tax which we are aware of . there are quite a few which are in the secret domain.
aren't the banks collecting charges for withdrawing our own money ? yes. keeping money elsewhere is illegal. every transaction above a certain limit , rs 20,000 before the present budget, should be by way of bank cheques only. by cash is a crime. and to withdraw our own money from the bank we should pay penalty nick named processing charge, atm charge , transaction charge etc. ( minimum balance penalty is excluded for brevity. )
get all the money into the bank by force . appropriate a portion to the bank every time anyone takes his money out. great. but not enough to pull the banks out of the quagmire they are in , affectionately called npa , which in fact is nothing but forgone loans.
can this process of recapitalisation run for ever ? oh no. no need . we will sell off these public sector banks . after cleaning up the balance sheets by recapitalising a few more times. depending on how many chances we are likely to get in the govt.
will anyone bid for these banks ? sure enough , yes.  if they understand the monopoly chance lurking just a few years away. if planned and executed properly they can hope to have a monopoly of sorts in indian banking a few years from the sell off or let's call it the buy out.  and of course the fact that they will have to pay just a token price. after all it is the govt who is the seller.
so recapitalisation is just a small step in the long trip. hold the stand up clap. emulate the main opposition party . keep mum. or follow the leftist stalwarts. pretend to look the other way . come back with protests and processions when every thing is over.
grin and bear it . believe me. we can.