Law | Economics | Policy
Sir, I had worked out that "stressed assets" are probably closer to 30% than 11% as reported today in the press. I had written a brief note on this issue which may be of interest to you. http://alphaideas.in/2015/06/02/no-ache-din-for-banks-yet/ & http://alphaideas.in/2015/06/12/digging-deeper-into-power-sector-npas/Thanks.
Your article unseemingly makes a point, which in my view is perhaps the major drawback and shortcomings of India’s Constitution, i.e. the way I understand the Constitution vests all the powers in the hands of elected-members and no accountability are ask of them.Your article makes a great point as how the defaulters are dragging down the economy and are threatening the macroeconomic stability of India. In the process have become threats to the livelihood of the individuals and denying the individual’s right to pursue happiness through economic freedom. It is well known that the elected-members use the Public Sector Banks as their piggy bank, siphoning public’s hard earned money through backdoor routes for their personal purposes. Such accounts have been widely published in several medium. No politicians have been indicted or charged for such corrupt practices.When the individual’s rights and the state of the Country are in threat, then the process of transforming the State must not be vested in the hands of few. All the stakeholders (whether it be the states in the country, or the institutions, or an individual) must be endowed with the power to initiate and enforce change to bring about stability of the Country and protect the individual right, a system similar to that in the USA. In conclusion, I disagree with your view that RBI must not cross the red line and must follow the set processes when the banking system, a basic fabric of the society, is under the threat.
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