RBI should fix responsibility for excess in NPAs: Former Governor Y V Reddy

Former RBI Governor Y Venugopal Reddy steep rise in NPAs in public sector banks was more to do with their governance rather than a systemic problem

Former Reserve Bank of India(RBI) Governor Y Venugopal Reddy on Thursday suggested that a high level internal inquiry within the RBI should be undertaken to fix the responsibility for excesses in non-performing assets (NPAs) in recent years and, more important, to suggest and adopt measures to improve the system as a whole.

Delivering a lecture on the topic, 'State of Banking in India', Reddy, who was Governor of the Indian Central Bank between 2003 and 2008, said that the steep rise in NPAs in public sector banks was more to do with their governance rather than a systemic problem.

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