Centre Moots Changes In Secrecy Law

The Centre is planning to make suitable amendments in the Secrecy Law to enable it announce names of defaulters of various public sector banks, according to Union minister of state for finance Balasaheb Vikhe Patil.

Patil said the proposal was now under serious consideration of the Reserve Bank of India (RBI). He told this to mediamen during a function organised to mark the inauguration of the regional office building of Allahabad Bank here today.

He said, at present, the names of only those defaulters who are being tried by the Debt Recovery Tribunal (DRT) are revealed in the public. The names of other defaulters are not being announced because of provisions in the Secrecy Law.

Patil said the government was keen to publish the entire defaulters list. "We are trying to follow international practices in this regard," he said.

Expressing concern over rising non-performing assets (NPAs) of the public sector banks, he said the figure had zoomed to Rs 54,000 crore. The government was planning to take stringent measures to improve the recovery rate, he said.

"We will not spare any defaulter, particularly the big ones," he asserted. He put the number of willful defaulters between 200 and 250.

Patil said banks had been instructed not to ask for postponement of any recovery trial except in exceptional cases for which the banks have to give sufficient reasons for postponement.

"We have asked the banks to ensure that there is no delay in trial at DRT because of them," he said and observed that banks would be provided all help to plug the loopholes in the way of recovery of debt.

Stating that the prime minister has announced that the next budget will be a farmers' budget, he pleaded for rapid development of the agriculture sector to give a fillip to the economic growth.

Emphasis should be laid on development of the horticulture sector, he said and suggested for blending of new technology with the old one for the purpose.

He also felt that the agriculture and the horticulture sectors should be made export oriented and saw scope for strengthening of the marketing set-up, particularly in the context of the World Trade Organisation. He said the government was intent on bringing more farmers under the social safety and crop insurance net.

He rued that credit input in the farm sector in Orissa was very low at Rs 650 per hectare, while the same is Rs 2,500 per hectare and Rs 1,000 per hectare in Punjab and West Bengal, respectively. He urged the banks to come forward to meet the agricultural credit requirement in the state.