You are here: Home » Opinion » Letters
Business Standard

Letter to BS: CAG questions RBI's accountability over NPA crisis in banks

The CAG needs to take an objective and holistic view of the problem rather than attempt to whip the favourite scapegoat, the RBI

Business Standard 

RBI

This refers to "What was doing? on crisis" (October 24). The Comptroller and Auditor General of India (CAG), Rajiv Mehrishi, has overlooked many important points while questioning the (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 has no statutory authority to appoint or remove the 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 and the complete lack of professionalism in the appointments of board members ensure that the functioning is never transparent. The needs to take an objective and holistic view of the problem rather than attempt to whip the favourite scapegoat, the

Arun Pasricha New Delhi


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 must have a postal address and telephone number

First Published: Sun, October 28 2018. 23:53 IST
RECOMMENDED FOR YOU