One cannot have power without being responsible to use that power and accountable to the people of India. Institutions will always remain important for economic development of India. At the end of the day it is the public interest which is paramount.
It is our duty to hold institutions accountable to the people of India. We need to know whether all the people are able to get loans from the banks easily, what is the liquidity situation in the country today. After that, I am sure everybody is having second thoughts.
It is our Government which had the gumption to bite the bullet, and say that if an account is an NPA, recognise the asset quality. For the first time in the history of India big borrowers have to repay to the banks.
Without any reference to the board of directors, suddenly on 1st April 2017, RBI drastically changed the Prompt Corrective Action framework. This is not there anywhere in the world. It was like changing the rules of the game midway into the match. This has not been debated enough
Would you not want the Government to at least ask questions of the revised PCA framework – what promoted you to change the rules half way into a game? Did you discuss it with anybody, is it comparable to international norms?
There was never any intention that RBI’s capital should be transferred to Government. But their capital reserves are amongst the highest and are not being put to good use. It could possibly have been used to support the Banks just as was done in USA during the financial crisis
