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The announcement of the $30 billion recapitalization package by Finance Minister Arun Jaitley to revive the capital-starved Public Sector Banks has regenerated fresh hope amid the gloom caused by the recent Indian economic conundrum. While investors across the world welcomed the series of the reforms introduced by the Modi Government which include demonetization, the introduction of Goods and Services Tax and the Insolvency and Bankruptcy Code, and the launching of the digitalization drive, more specific actions were expected in order to face the mammoth challenge caused by the rising Non Performing Assets of PSBs. This edition of Bureaucracy Today brings you a comprehensive analysis of the rising NPA’s, and recap bonds and their possible implications for the Indian economy, especially those on the fiscal and external fronts.

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