In his most hard hitting speech against recalcitrant
defaulters, Reserve Bank of India governor Raghuram Rajan has said that the
amount written off by banks as bad debts in the last five years would have been
enough to fund the education of 15 lakh of the poorest children in the top
private universities of the country, all expenses paid. Pointing out that
sanctity of debt contract is being continuously eroded in India, the governor
said only Rs 30,590 crore of bad debt was recovered by banks through the debt
recovery tribunals in FY14 from the Rs 2,36,600 crore claimed even as cases
keep piling up.
NPA of banks is the real source of black money. All Fekus
instead of curbing the NPA, scream over black money stashed in Switzerland.