Farms loans: RBI concerned over cases against bank staff in Maharashtra | Business Line
Farms loans: RBI concerned over cases against bank staff in Maharashtra | Business Line
My VIEW:
The issues involved in the move by state government to ‘punish’ bank staff for not achieving lending targets are much deeper. Amaravati collector’s notices to bank staff invoking penal provisions for not achieving targets came weeks after the report “Bank employees will court trouble for refusing loans to farmers: CM” appeared in the media on June 17, 2015.
As messages travel faster than light these days, the regulatory and supervisory bodies may have to take cognizance of even ‘political’ statements by responsible ministers and government employees and correct position need to be brought to light fast.
If bank employees are made to work under direction from local bodies and state governments, the banking system may lose credibility. For ensuring social responsibility, there are consultative committees at various levels in which organisations like NABARD participate and RBI issues guidelines consistent with the GOI policy. Any shortfall in achieving institutional lending targets to various sectors/areas, as noticed during District/State Level Consultative Committee meetings, for which banks alone are responsible should be brought to the notice of the representatives of RBI which has regulatory and supervisory responsibility over banks.
M G Warrier, Mumbai
My VIEW:
The issues involved in the move by state government to ‘punish’ bank staff for not achieving lending targets are much deeper. Amaravati collector’s notices to bank staff invoking penal provisions for not achieving targets came weeks after the report “Bank employees will court trouble for refusing loans to farmers: CM” appeared in the media on June 17, 2015.
As messages travel faster than light these days, the regulatory and supervisory bodies may have to take cognizance of even ‘political’ statements by responsible ministers and government employees and correct position need to be brought to light fast.
If bank employees are made to work under direction from local bodies and state governments, the banking system may lose credibility. For ensuring social responsibility, there are consultative committees at various levels in which organisations like NABARD participate and RBI issues guidelines consistent with the GOI policy. Any shortfall in achieving institutional lending targets to various sectors/areas, as noticed during District/State Level Consultative Committee meetings, for which banks alone are responsible should be brought to the notice of the representatives of RBI which has regulatory and supervisory responsibility over banks.
M G Warrier, Mumbai
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