Farm loan waiver affects credit discipline: RBI
On March 15, Bhattacharya had expressed reservation over assurances and demand for complete farm loans waiver, coming from different quarters. The following day, Congressmen staged a protest outside the SBI headquarters at Nariman Point in Mumbai to protest.
Echoing State Bank of India chief Arundhati Bhattacharya`s views, Reserve Bank of India (RBI) Deputy Governor S.S. Mundra on Thursday expressed concern over farm loan waiver affecting credit discipline.
"The RBI`s views has always been that farm loan waiver affects credit discipline," Mundra told reporters at the launch of Bandhan Bank`s branch here.
On March 15, Bhattacharya had expressed reservation over assurances and demand for complete farm loans waiver, coming from different quarters. The following day, Congressmen staged a protest outside the SBI headquarters at Nariman Point in Mumbai to protest.
Those making the demand for loan waiver include Maharashtra`s opposition parties and the ruling ally Shiv Sena, besides the Karnataka government, while assurances to this effect have been made in Punjab and Uttar Pradesh.
Bhattacharya too said it will disturb credit discipline among borrowers, since they will keep expecting more such waivers in future and then those (future) loans will remain unpaid.
On resolution of the non-performing assets (NPAs) issue, Mundra said discussions were on in this regard.
"A number of resolution mechanisms have been given to banks from time to time. Variety of cases will require use of different instruments," the RBI senior officer said.
"Valuation of stressed companies need to be transparent," he added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
04:24 PM IST