NPA reduction claim by the Minister of Finance Myth & Reality.
The above data speaks that addition in NPA in last six & half years is 17.97 lac crores as against which reduction by all means is 6.71 lac crores while write off 9.30 lac crores. In NPA as also write off share of corporate is more than 70%. All measures for the recovery such as Debt Recovery Tribunal, SARFESI, Insolvency & Bankruptcy Act have not yielded the results. The burden of this is ultimately shifted to commen man in the form of rise in service charges, or in rate of interest on Deposits as also Advances which or otherwise could have been reduced in case of advances & increased in case of deposits. This is the reason why Government was required to infuse capital in ailing banks consiquent upon huge losses on account of huge NPAs, by providing for in the budget out of tax payers money.
Does it mean that there is no solution to this chronic problem? Certainly not ! Government should amend Banking Secrecy Act & should publish names of the defaulters, willful default should be treated as crime by amending Indian Penal Code, they should be disqualified from contesting elections for the public office by providing for in the code of conduct, recovery laws should be made stringent & personal guarantees of the borrower & guranters should be invoked. The sanctioning authorities should be made accountable & answerable & last but not least Government should come out with white paper on ihe issue of NPA & Write off in the banking system.
Devidas Tuljapurkar General Secretary MSBEF 9422209380
Loan Write offs is the “Biggest Scandal of the Century” https://www.moneylife.in/article/loan-write-offs-is-the-biggest-scandal-of-the-century/46846.html Sucheta Dalal 09 May 2016 Prashant Bhushan has framed several important issues to be considered by the Supreme Court (WRIT PETITION CIVIL NO. 573 OF 2003) on the bad loan issue. These include:
€ Safeguards need to ensure that loans are not restructured without good reasons or restructured on fair terms;
€ Mechanism to ensure that banks obtain adequate security for loans to corporates;
€ Mechanism to ensure prompt action by banks to recover loans;
€ Audit instrument to prevent siphoning of assets of debtor companies through under/over invoicing or through sister entities;
€ Need to ensure that mortgaged assets are not sold off to Asset Reconstruction Companies (ARCs) at arbitrary prices and the further sale of those assets by ARCs;
€ Clear definition of ‘wilful defaulters’ and making them ineligible for further loans from PSBs, etc.
one crucial issue is missing from this list. It is the massive ‘technical write-offs’ by PSBs which were dubbed the “biggest scandal of the century” by Dr KC Chakrabarty (ex-deputy governor of RBI and ex-chairman of Bank of Baroda and Punjab National Bank), in response to a query by Indian Express on the bad loan issue.
This is especially important since some bankers have denied that these write-offs are a scam and insist that the “write-offs are done as a prudent measure and in accordance with the regulatory guidelines laid down and, therefore, cannot qualify as a scam.” But it is a fact that bankers like ‘technical write–offs’ because they remove bad loans from their books and also give them a tax advantage. In the past two decades, banks have written off several lakh crores of rupees as technical write-offs. The Indian Express reported that Rs1,14,000 crore has been written off in the past three years alone.
http://www.rtifoundationofindia.com/cic-respondent-banks-provide-names-its-wilful-defa#.Y3zNh31BzIU
https://dsscic.nic.in/files/upload_decision/7436_ASHOK_KUMAR_GOYAL.pdf
https://www.livelaw.in/pdf_upload/249162003310137972order08-sep-2022-434627.pdf
What India’s draft digital privacy law says — and how it compares with data protection laws elsewhere https://indianexpress.com/article/explained/explained-economics/india-draft-digital-privacy-law-data-protection-laws-8279199/
The reworked version of the data protection Bill, released three months after the Govt withdrew an earlier draft, eases cross-border data flows and increases penalties for breaches. But it gives the Centre wide-ranging powers and prescribes very few safeguards.
two potentially significant red flags: a near blanket exemption for government agencies from complying with some of the more onerous requirements under the Bill, and a dilution of the remit of the proposed Data Protection Board, which is mandated to oversee the provisions of the proposed legislation.
This larger policy includes a comprehensive digital India Act that would eventually replace the existing IT Act, the new data protection Bill that has just been unveiled, and the new telecom Bill that was put in the public domain last month.
In contrast, the landmark GDPR, in force since May 2018, is clearly focused on privacy and requires individuals to give explicit consent before their data can be processed. A pair of sub-legislation — the Digital Services Act (DSA) and the Digital Markets Act (DMA) — take off from the GDPR’s overarching focus on the individual’s right over her data. The DSA focuses on issues such as regulating hate speech, counterfeit goods etc. while the DMA defines a new category of “dominant gatekeeper” platforms, and is focused on uncompetitive practices and the abuse of dominance by these players.
-The Original Thackeray: 7 Things About Prabodhankar You Must Know. Many don’t know that Bal Thackeray’s father was a social reformer, a political activist and an eminent author. 20 Nov 2016. “Prabodhankar’s Hindutva was not against any religion.” . ...Prabodhankar was a face of anti-Brahminical movement....Prabodhankar was aggressive about women’s rights and education.