I am disappointed that many learned columnists and journalists are not asking the Reserve Bank of India (RBI) or public sector bank chiefs the right questions. Why haven't we heard you ask them if depositors' money is now at risk? The impaired loan stock of the public sector banking system has risen above bank capital levels, ergo, bank deposits are now being lost because over the ensuing loan-recovery period there will be no interest accrued. The so-called net profits of the banking system are a chimera as banks are afforded tremendous accounting flexibility to show the profit levels they desire.
I have noticed Business Standard mention that the current account deficit, the rupee, growth and so on are the biggest challenges in front of Raghuram Rajan. This is a fallacious, elitist view, and it takes attention away from the RBI's primary job, which is maintaining the integrity of the financial system. Please focus on the single real issue instead of writing as many talking points as you can think of, like in an SSC student's history answer book.
Rohan Soares Mumbai
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