After the ordinance issued earlier this month to expedite the resolution of “stressed assets” (non-performing loans or NPAs) of the commercial banking system, and the larger role assigned to the Reserve Bank of India, I was reminded of the experience of the Credit Authorisation Scheme (CAS) introduced in 1965. It required the central bank’s clearance before any loan beyond Rs 1 crore sanctioned by a commercial bank could be released to the borrower. CAS continued for a couple of decades with periodical increases in the clearance threshold. In 60 years of observing the RBI, the only time I remember corruption
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