Business / Old pension scheme latest news Raghuram Rajan warns against shifting to OPS from National Pension System

Old Pension Scheme: Various discussions are going on across the country regarding the Old Pension Scheme (OPS). In the midst of all this, the old pension system is being implemented in many states. At the same time, in many states, it has been flatly refused. On New and Old Pension Scheme, former Governor of Reserve Bank of India Raghuram Rajan said that government expenditure will come down, but liabilities will increase for the future.

This big information given in the interview

Apart from this, Raghuram Rajan has also alerted the banks not to lean too much on retail loans. Apart from the World Economic Forum, in an interview given to an online portal, Rajan has said that it is right to adopt the new pension scheme because the old pension scheme had become huge liabilities and at present all the states which are adopting the old pension scheme will have to move forward. Trouble may have to be faced in the coming times.

Many states adopted the old pension scheme

He further said that it is easier for governments to adopt defined benefit plans as liabilities are not being recognized. At present, many state governments like Rajasthan, Chhattisgarh and Punjab have adopted the old pension scheme, Himachal Pradesh is also included in this.

states will have to decide

Rajan further said in the interview that although it is for each state government to decide, these schemes should be effectively targeted for the weaker sections of the society, so that they can get the benefits.

Alerted regarding retail loan

During the interview, the former RBI governor also cautioned Indian banks against their shift towards retail lending, as he said there could be potential risks in case of a recession.

Bank should check loan infrastructure

Rajan's comments come at a time when Indian banks have seen a huge jump in retail assets as compared to wholesale loans. In the interview, he said that banks should examine all the risks involved in giving infrastructure loans. The former banker said that between 2007 and 2009, the RBI moved towards infrastructure loans, though problems cropped up later.