Write-Offs a Scam: Former RBI Deputy Governor

(Reserve Bank of India RBI) may ease norms for infrastructure funding www.ambitionias.com
  • “Technical write-offs by Indian banks are inequitable and should be stopped.
  • It is a big scam. Small loans are rarely written off, most of them are big loans,” said Former Reserve Bank Deputy Governor Dr K C Chakrabarty. It shoukd be noted that Public sector banks have written off Rs 1,14,000 crore in the last three years.
  • Banks are planning to write off more bad loans in the current year, and this could be Rs 52,227 crore, similar to the quantum written off in 2014-15.