How to Tackle India's Bad Debt Problems

The video discusses the Indian government's recent measures to empower the RBI in tackling the bad debt issue, including a new bankruptcy law. It highlights the realization of the debt problem's scale, with bad debts and stressed assets each constituting 8% of total loans. The discussion suggests that larger measures, such as significant capital injections and privatization of state-owned banks, are needed to address the banking sector's challenges. However, political challenges may hinder these solutions.

What signs indicate that the RBI and the government are beginning to address the scale of the banking problem?

What challenges does the government face in implementing privatization of state-owned banks?