Letters: Banks get an RBI boost

Apropos the report "Guarantor can also be named wilful defaulter" (September 10), the Reserve Bank of India (RBI)'s clarification that individuals or corporate entities acting as guarantors to loans could also be identified as wilful defaulters should bring much cheer to the banks and give them more power to take on erring borrowers. Mounting bad debts in banks have been a matter of concern in recent years and despite efforts to recover the dues many defaulters have found a way to dodge the system. The constant follow-up, sending of notices, filing of suits and hiring of recovery agents have had little or no impact on the borrowers. This has instead resulted in precious man hours and resources lost. These tighter rules are just what the doctor ordered and the banks should now rein in the "King of Good Times" and others of his ilk.

N J Ravi Chander Bangalore

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number