Letter to BS: We are paying penalty for ignoring basic banking principles

Letter to BS: We are paying pealty for ignoring banking principles

This refers to your editorial “Setback for RBI” (April 3). While the entire content of your editorial is rational, the caption is misleading. The setback is for the Indian economy and the financial sector. We are in the process of paying the penalty for abusing the financial system ignoring the basics of banking principles. The Reserve Bank of India (RBI) and the banks have gone out of the way to support the government schemes and projects aimed towards economic development.

The banks’ resources being public deposits that are repayable on due dates, timely recovery is essential for meeting their deposit