Letters: Engage Empowering RBI

RBI will need a strong team to persuade and monitor the banks

“RBI in driver’s seat” (May 8) rightly points out the enhanced role of the Reserve Bank of India RBI in asset quality woes. The RBI has been progressively introducing stiffer methods to improve asset quality but with limited success. The measures introduced so far can improve the quality of standard assets, that is to check future slippages, but resolving the existing huge stock of non-performing assets (NPAs) is always challenging. Borrowers are indifferent to banks’ offer. Banks are unable to agree to deeper haircut due to multiple reasons. Now, the RBI is vested with the onus to guide banks to