What was RBI doing, asks CAG Rajiv Mehrishi on NPA crisis in banks

The major cause of current banking crisis is huge asset liability mismatch

Comptroller and Auditor General of India (CAG) Rajiv Mehrishi on Tuesday questioned the role the of Reserve Bank of India in the present banking crisis, asking what the regulator was doing when the banks were lending huge amounts that resulted in asset-liability mismatch and huge bad loans.

The banking sector had non-performing assets (NPAs) or bad loans worth over Rs 9.61 trillion by the end of 2017-18, according to government data.

"In the present banking crisis, we all have a narrative about how it can be sorted out, recapitalisation of course, which is a very strange word to be used