Ordinary Indian citizens on the road ( approx. 1300
Million ), do not understand – nor care to understand – the difference between
a NPA and a FRAUD
When they get to read following news headline :
- the only conclusion they
draw is what I described in my following blog :
Tuesday, 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
Crores 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 ?
21 Feb 2018 :
I was about to miss out that despite ground-breaking /
transformative reforms carried out by the NDA government during last 4 years,
the recent spate of “ Bank Scams “ have convinced
the ordinary citizens that ,
: Between them , the Government and the Banks
constitute a gargantuan mechanism whose sole purpose is to siphon away the “ Blood and Sweat Money “ of the toiling masses to
nourish the fraudsters :
This is a VERY BAD omen for the BJP for 2019 Lok Sabha Elections !
21 Feb 2018
