My View on "Banks ask Fin Min to reject AP govts farm loan wai...":
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.
- Dr.Santhanam
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