(a) Whether the Government has any proposal for reforms in pension, insurance
and banking sectors as reported in the Times of India dated the October 7, 2006 ;
(b) If so, the details thereof ;
(c) Whether the Government has prepared any plan in this regard ; and
(d) If so, the details thereof and the steps being taken to implement it ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI P. K. BANSAL)
(a) to (d): As part of a comprehensive pension reforms effort, a new restructured defined
contribution pension system for new entrants to Central Government service, except to the
Armed Forces, in the first stage, replacing the existing system of defined benefit pension,
was notified on 22nd December, 2003. The new system was implemented with effect
from 1st January 2004.
Various reform measures have been introduced since 1991 in the banking sector in a gradual
manner, which have had a major impact on the overall efficiency and stability of the banking
system in India. The present capital adequacy of Indian banks is comparable to those at
international level. There has been a marked improvement in the asset quality and profitability
of banks. Banking sector reforms have also emphasized the need to renew manpower resources
and rationalize requirements so as to reduce operating costs and improve profitability. As regards
the insurance sector, a proposal for legislative amendments is being finalized.