This refers to "What was RBI doing? CAG on NPA crisis" (October 24). The Comptroller and Auditor General of India (CAG), Rajiv Mehrishi, has overlooked many important points while questioning the Reserve Bank of India (RBI)'s accountability in the banks' non-performing assets (NPAs) crisis. These include the political interference and bureaucratic pressures to sanction loans to big corporates even when the proposals are unviable. The pressure on the boards of the state-owned banks to sanction fresh/ad hoc loans and evergreen stressed assets to prevent them from turning into NPAs has also resulted in the mess that we see. The RBI has no statutory authority to appoint or remove the CEOs of the government-owned banks and supersede their boards in case of acts of malfeasance or negligence. The political interference in the appointments of these CEOs and the complete lack of professionalism in the appointments of board members ensure that the functioning is never transparent. The CAG needs to take an objective and holistic view of the problem rather than attempt to whip the favourite scapegoat, the RBI.
Arun Pasricha New Delhi
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