Cong slams govt on RBI's framework for compromise settlements among lenders

Days after the RBI announced a framework for compromise settlements and technical write-offs among lenders, Congress leader Randeep Singh Surjewala on Monday slammed the centre over the scheme

Days after the Reserve Bank of India (RBI) announced a framework for compromise settlements and technical write-offs among lenders, Congress leader Randeep Singh Surjewala on Monday slammed the centre over the scheme saying "after giving safe passage to fugitive offenders the government is now preparing to give safe settlement".

Surjewala, who is party's General Secretary and a Rajya Sabha MP, took a jibe at the scheme and said, "The Modi government, which gives 'safe passage' to the country's economic criminals and fugitives, is now preparing to give 'safe settlement'. Those who loot public money and commit bank fraud will no longer be considered criminals. The fraud will be 'settled' by compromising with them...'will eat a lot, and make others eat too'."

His remarks came after RBI on June 9 announced a framework for compromise settlements and technical write-offs among lenders.

In its statement on developmental and regulatory policies which accompany the monetary policy statement, RBI said that while the 'Prudential Framework for Resolution of Stressed Assets' dated June 7, 2019 provides a broad principle-based framework, with a view to provide further impetus to the same, as well as to harmonise the instructions across all regulated entities, it will issue a comprehensive regulatory framework governing compromise settlements and technical write-offs covering all regulated entities.

--IANS

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