Rajan's mantra to rein in NPAs includes a closer examination of Mudra loans

To prevent future NPA crisis, Rajan advised that government should refrain from setting ambitious credit targets or waiving loans

In his reply to a parliamentary panel questionnaire on bank NPAs, or non-performing assets, former Reserve Bank of India (RBI) governor Raghuram Rajan has prescribed a closer examination of Mudra loans and Kisan Credit Cards to prevent an NPA crisis in the future.

The Parliamentary Committee on Estimates, which is headed by senior Bharatiya Janata Party (BJP) leader Murli Manohar Joshi, had sought Rajan’s views on the NPA crisis.

The request had come from the estimates committee after former chief economic adviser Arvind Subramanian in his deposition to the committee said that Rajan had identified the NPA issue early in