No Bank Credit for Hoarders

The Centre has instructed the states to act against grain hoarders. In the distant past, RBI's selective credit control (SCC) operated in sync with the government's stock control stipulations. During the Gulf crisis, it was given up as it was seen as directed credit. However, directed credit still prevails, such as targets for priority sector advances. The SCC was operated with three instruments: minimum margin, level of credit and minimum rate of interest. So, minimum margin alone can ensure that bank credit is not used for hoarding commodities in short supply . The RBI should give the idea some thought. 
- A SESHAN Mumbai
ET