The central bank should implement the Mahapatra committee proposals speedily without allowing any exceptions
.....the Reserve Bank of India (RBI) should gradually withdraw the cover it provides for politically motivated lending decisions. In other words, it should not dilute its reporting and provisioning standards on loans made, especially to public sector enterprises. Yes, this would show the financial health of the Indian banking sector in poor light. However, allowing sunshine into Indian bank financials is far better than taking a sanguine view of their health based on diluted standards. Moreover, politicians have not used the time afforded by the restructuring to eliminate the underlying causes that give rise to NPAs in the first place.......
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