Speaking up

The RBI governor’s apprehensions with regard to loan waivers and such other critical issues are a good sign. Massive loan waivers will severely impact the recovery process of banks. Mounting NPAs, meeting the additional capital needs of banks, and the need to think beyond recapitalising PSBsare issues to contend with. The RBI, like its counterparts across the globe, should work as an autonomous body that need not necessarily concur with the views of the Government. The RBI has done its bit to send the right signal to the Government. Now it is for the Government to act.

Srinivasan Umashankar

Nagpur

Flouted guidelines With the arrest (and subsequent release) of Vijay Mallya for defauling on loans, the Government is moving in the right direction. The entire political fraternity has to share the blame for whatever has happened. It is obvious he had links across political lines which not only helped him get loans but also ensured he was nominated to the Rajya Sabha to exercise his clout and get away.

Various RBI guidelines were floated. If a group company’s loan account is designated an NPA then the loans of all companies should be so designated with no further release of loans, and a recall notice should be issued. But instead Mallya was merrily getting loans in the name of KFA (Kingfisher Airlines) and other group companies. Also an NOC is neededbefore fresh loans are released. Loans were restructured indiscriminately to advance further loans. Loans were given without following RBI norms; no wonder there are huge NPAs.

Srinivasan Velamur

Chennai

This is just the beginning of a long legal battle and we do not have any reason to be overjoyed yet. Mallya will have the best lawyers at his disposal. Therefore, it is essential that our government produces foolproof, credible and critical evidence. Also, even if he is brought to India fast, it is not that our banks will get their money back; again it would be a long-drawn legal battle.

Bal Govind

Noida, Uttar Pradesh

With Mallya getting bail upon a deposit of £650,000, India must now prepare for a long-drawn out appellate process in the UK courts. The arrest should be seen as part of a multi-pronged effort by the Government to tackle black money, bad loans, and nefarious corporate practices. The challenge before the Modi government is larger than Mallya. It must go after all the big loan defaulters and bring them to justice. That said, would the Modi government be ready to go after corrupt politicians too?

J Akshobhya

Mysuru

Harsh position

The RBI’s decision to make increased provision on standard assets after framing a board-approved policy is harsh on the banks which have already been incurring heavy losses due to higher provision on NPAs and loss in capital.

Simply building resilience in the balance sheet is not the answer. A close monitoring of such assets with the help of the Government would serve the purpose. Stressed assets have already been classified in three categories — Special Mention Accouts I, II and III; close follow-up is being done. It is enough if a sincere effort is made to see that these SMA category does not slip into NPAs. Increasing the provision for standard assets would certainly throw banks into the debt trap. Hence the RBI should revert its decision and save the banks.

TSN Rao

Bheemavaram, Andhra Pradesh

Sane advice

President Pranab Mukerjee’s endorsement of the need to make Hindi compulsory in CBSE schools is welcome. His recommendation that the Centre should consult the States in while implementing this is reasonable and appropriate.

The Centre should heed to his sane advice in this regard and do not earn the wrath of States that oppose Hindi being made compulsory. Already the BJP is struggling in the south; it should realise that it cannot survive or grow in those States if it provokes them by making Hindi compulsory.

VS Ganeshan

Bengaluru

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