Page 10 - Banking Finance June 2017

RBI CORNER

RESERVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Privatization of PSU Banks Reserve Bank of India
The deputy governor of RBI, Mr. Viral Acharya reiterated Governor Urjit Patel's upgrades security for
call for merger of under-performers with stronger
banks as a quid pro quo for government capital injec- note storage, transpor-
tion. "It would provide great opportunity to rejig man- tation
agement responsibility away from those who have The Reserve Bank has started an ex-
underperformed or dragged their feet the most," said
ercise of
Acharya in his speech at a FICCI event in Mumbai. upgrad-
In his speech, the deputy governor likened the bad loan ing mea-
situation to a person slipping off the terrace of a sky- sures for
scraper. He said that not preparing for an emergency is akin to "hoping that secured
laws of gravity will freeze and work differently this time". storage
and movement of currency at over
Reserve Bank of India refuses to divulge list of loan 4,000 chests across the country in
defaulters view of heightened threat perception.

The Reserve Bank of India has refused to disclose in public the list of loan default- Recently several instances of looting
ers with public sector banks despite an Supreme Court of cash vans and banks, as well as
order in 2015 to make this information public. The case ATMs dispensing fake currency notes
relates to an RTI application filed by Subhash Agrawal have been reported from different
who had sought to know the list of people who had parts of the country.
defaulted in the loan of Rs one crore and above. RBI has constituted a High Level
According to the government, the gross NPA of the Committee on Currency Storage and
public sector banks stood at Rs 6.06 lakh crore as on December 31, 2016. The RBI Movement (HLCCSM) to review the
had denied the information citing the clauses of economic interests of the state, existing security arrangements relat-
the commercial confidence and the information held in fiduciary capacity. ing to storage, movement and pro-
cessing of currency.
RBI empowered The RBI is seeking global expertise
The Presidential Ordinance empowers the Reserve Bank of In- to assist the Committee in matters
dia (RBI) to enforce expeditious resolution of non-performing relating to security aspects, move-
assets (NPAs) of banks. RBI has powers to issue directions to ment and storage of currency, auto-
lenders to initiate insolvency proceedings for the recovery of mation of currency processing and
bad loans. handling.

10 | 2017 | JUNE | BANKING FINANCE

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