With reference to Gajendra Haldea’s article, “Monumental failures of RBI” (August 23), I fully agree with him that the Reserve Bank of India has failed to perform its role as regulator of the banking system in India. One reason might be the invisible intervention by vested political and government agencies and people.
Besides, with respect to demonetisation, the implementation of which was a mess, the RBI virtually followed the dictates of the government.
One wonders what the RBI was doing when non-performing assets (NPA) were piling up even as banks were writing off bad debts. There is a growing demand for fixing culpability for the granting of bad loans and the failure to recover them.
Haldea has rightly focused on the dilemma facing honest taxpayers. Let us hope the RBI will rise to the occasion and maintain its autonomy and act firmly to tackle the NPA crisis, otherwise the national financial system is bound to collapse.
No wonder, we are being dragged towards imposition of a financial emergency under Article 360 of the Constitution.
M K Bhandari Mumbai
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