Thank You , Shri Acharyuluji

Thank  You , Shri  Acharyuluji

[ madabhushisridhar@gov.in ]

Just read your comments in :

https://www.thehindubusinessline.com/money-and-banking/disclose-what-action-taken-against-wilful-defaulters-over-rs-50-cr-loans-cic-to-govt-rbi/article24810277.ece

which reads :

  

“ The Information Commissioner Sridhar Acharyulu pointed out that the defaulters of small amounts like farmers are defamed in public, while the defaulters above Rs 50 crore were given long rope.

  

“ They lived by and died in the agricultural fields believing in mother earth, but did not leave mother land like 7000 rich, educated corporate industrialists who cheated the nation by evading thousands of crores,”  Acharyulu said.

Many thanks for your blunt talk , which [ unlike my following e mail to the Policy Makers , some 3 years back ] will be heard and acted upon :

=======================================================

Bank  Re-Capitalization  ?  [  23  June  2015  ]

 Here is a layman's understanding :

*   Bank executives give Rs 4 Lakh Crores worth loans to

    Industrialists / Businessmen ( who , sometimes happen to be

    close relatives / friends )

     

*   Bankers " forget " to examine past records of loan-repayments

     by these individuals 

 

*  Banks do not share among themselves info about " black-listed "

    borrowers

*  Banks " forget " to inquire if a loanee is a " Benami " company

*  Banks do not incorporate stringent clauses in loan agreements (

    on purpose )

*  Banks adopt " Forget & Forgive " approach to defaulters

*  For loan recovery , bankers wait for other  bankers to take the

    lead

*  Before taking action , bankers check-out with people in power

*  When sinking under the burden of NPA , bankers run to

    Government of India to bail them out through " Bank Re-

    Capitalization "

   

*  Government oblige by giving money to stressed banks, so that

    they can survive

*  Government rationalize its bail out by saying, " depositors must

    be protected " . Sounds so reassuring  !

*  Government then goes out and raises taxes ( direct + indirect )

    to balance its books  ( Current Account Deficit ? )

   

IN A NUTSHELL :

*  Eventually , honest tax-payers foot the bill, one way or the other 

*  7,000 + loan-defaulting swindlers spend vacation in Switzerland

    with family ( and their politician friends ) - till they are ready to

    borrow more !

 
   

*  Bankers vie with each other to " Re-Schedule Payments " and

    advance fresh loans to pay off old loans ( Rs 4 lakh Cr of NPA ).

    If EU / IMF can do this for Greece , why cannot we ?

 
*  Government will take pride in " Bold Banking Reforms "( to

    please IMF ? )

*  As a Nation , we are very compassionate !  We cannot let any

    institution die !

 
  We are obsessed with keeping it alive at any cost . We must ,

  forever , keep it alive with artificial ventilation / blood transfusion !

 

    It is time to re-think : 

    When a person or an Institution just cannot be kept alive , it

    must be allowed to die , in a dignified way !

 

Would it not be far better to protect the small bank-depositors by returning their deposits ,  rather than infuse Rs 4 lakh Crores into these banks , by way of re-capitalization ?

 
Am I missing out on something that economists know better ?

31  Aug  2018

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