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23
March 2017
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 Total
Investment & Insurance Solutions
"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. The Total Investment & Insurance Solutions
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. The Total Investment
& Insurance Solutions
"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.The Total Investment & Insurance Solutions
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