SUPREME COURT TO RAJAN: MAIN HOON NA

Till now Raghuram Rajan was fighting a lonely battle, but now he’s got company. Last month, our RBI governor gave a stern message to borrowers misusing public funds and still spending lavishly. But nothing happened as he was completely over ruled by our esteemed economic advisor Mr. Subramanian and few other well wishers of the banking sector.  Now can our CEA tell the highest court, ‘ Sir we can handle it. It is our job’. He cannot because things have got out of hand. SC court has every right to ask how the banks have accumulated huge non performing assets and losses. Public sector banks are known for their credibility as they represent the government and the public at large believes in them and thus they still represent 70% of the banking industry.

Though banks were nationalized in 1970s, financial inclusion process for the common man is still going on. People who have trusted the PSU banks by depositing savings of their lifetime got a rude shock owing to plummeting value of banking stocks due to skyrocketing NPAs, provisions and declining profits. The present government has been trying for a while with ‘Indradhanush scheme’ launched in the last Gyan Sangam. But it will take a lot time, effort to cleanse the entire system and not to forget the pain the investors and banks themselves have to go through as dirt has been lying there for years now.

As for now, the Supreme Court took notice of this Swachh Banking Sector Abhiyaan undertaken by the RBI and the government and wants to be a part of it. Thus has asked RBI to give a list of defaulters on loans of Rs. 500 crore and above it in the last five years. And if the Supreme Court becomes a part of it, Swachhata Abhiyaan will be 100% success. If in doubt go back to 2012 and refresh your memory.