....... “We've (also) told the banking secretary that such a measure at this point will vitiate the (loan) recovery environment,” said a senior banker with direct knowledge of the matter. “We have said the proposed step should be properly examined. The Andhra government should look at alternative ways to support farmers.”.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
The announcement is unethical. But, is there any provision in the BR Act to write off bank loans by anyone other than the Board of Management of the Bank concerned? Is it a legally tenable move? Just because none of the Chairmen of any PSB has challenged it in the past, the govts also take for granted and issue waiver of loans from time to time.RBI should guide the banks on the legality of this move as it involves the profitability of the banks which in turn adversely affect the depositors' funds with these banks. Unfortunately, there is no word from the RBI in this regard.
Post a Comment