Page 9 - Banking Finance December 2018

B N

BANK

Reser e Ban an e s o ern ent RB stan off not happ sit ation sa s
r rth
re istration of B s
r rth e er of centra oard Reser e Ban of ndia has said the
a orit fro Ben a
standoff et een the o ern ent and the centra an as
RB cance ed the certificate of re
not a happ sit ation as he ac ed se era re a ations so ht
istrations of as an as non an
the o ern ent for easier f o of credit. r rth
in finance co panies B s . t
fa o red re a in of pro pt correcti e action fra e
a so cance ed the certificate of re
or for stressed an s and easier f o of credit to M M s
istrations of 7 B s fo o in a
hich ha e een hit hard de onetisation and .
re est the for the sa e.
s an as oss a in state r n an s are nder the
he action co es a id diffic ties
facin n ero s siness constraints that RB fee s i a o the to ain
faced the B s sector. a or
hea th t the o ern ent fee s the centra an has red ced credit f o to
it 27 of the co panies hich
the ind str and o d h rt econo ic ro th. ndia he said is a an dri en
ost their icences are fro
econo and if o restrict the an s o are restrictin the econo .
Ben a the centra an said in a
state ent. e a so raised the other contentio s iss e of RB s reser es sa in ost centra
an s don t ha e reser es i e the RB ho ds. s nderstandin oes the
Ben a is fo o ed ttar radesh
o ern ent is on as in for a for ation of a po ic as to ho ch reser e
hich has seen fo r B icence
the centra an st ha e. r rth ho is co con ener of adeshi
cance ations the RB said a in
a ran Manch an R affi iate said pro idin for non perfor in assets at one
it c ear that these co panies sho d
o is a pro e and that an recapita isation can e en e done recap onds.
not carr o t siness acti ities fro
here on. o ern ent of ndia can iss e recap onds and sa after the an s are
recapita ised the i iss e shares he said. e a so raised the iss e of adoption
t can e noted that there are ore
of Base nor s. Beca se so e peop e thin the M fee s happ if e ha e
than 2 re istered B s in the
co ntr nder the re ation of the capita . e create pro e s for o rse es here pro e s do not e ists .
RB ith a handf of the ein er in de onetisation a correcti e eas re and a refor ati e one he
deposit ta in ones hich are re said the t o steps h rt icro s a and edi enterprises the ost. e
ated ti ht . need proper disco rse in e hi eca se that s here the action is . r rth
he B sector is facin i idit said the co ntr has een fo o in an tter ron i port po ic of ha in
tro es fo o in non pa ent of capita oods i port e ceedin oi i ports. e need to o in for hea i port
d es the tro ed infra ender restrictions. e ha e ot to c t do n the c rrent acco nt deficit and trade defi
since ate st. cit in the ne t one ear he said.

B CE | DECEMBER | 201 |