RBI Directive Towards Compromise Settlement A Detrimental Step : Sanjay Das

OPINION PIECE

The recent directives of RBI towards compromise settlement is detrimental step that may compromise the integrity of the banking system and undermine efforts to combat wilful defaulters effectively.

Since long we are demanding publication of names of big big wilful defaulters because it’s public money and only due to their non repayment the PSU banks suffered a lot and were posting loss for consecutive years . Despite that banker put forth their best endeavour to recover some portion of their NPA with much tiresome effort .

During the past five financial years, scheduled commercial banks (SCBs) wrote off bad debts worth Rs10.09 lakh crore. As per data provided by the Reserve Bank of India (RBI), public sector banks (PSBs) have recovered Rs4.80 lakh crore, including recovery of Rs1.03 lakh crore from written-off loans during the same period,

The decision of compromise in default accounts will vitiate the efforts of the bankers and it will again create an environment wherein the honest borrowers who are repaying on time will be deprived.

This reminds us the era of Devi Lal’s loan waiver and V P Singh’s era of cheap politics by waiving the loans and tarnishing the credit disciplines prevailing among the bank loanee…

The writer of this article is Mr. Sanjay Das, senior Union Leader and General Secretary, Bank Of India Officers’ Association