Eco Survey suggests end to forbearance, another asset quality review round

Severely criticises RBI for not being able to unearth full extent of bad debt mess in banks in previous AQR round

The Economic Survey report suggested that there should be one more round of asset quality review (AQR) of banks after the Covid-related forbearance is over, even as it severely criticised the Reserve Bank of India (RBI) for not being able to unearth the full extent of bad debt mess in banks in the previous round of such an exercise. 

The survey said the present round of forbearance measures should not be dragged on for long, but should be "discontinued at the first opportunity when the economy exhibits recovery,” adding, it is like an emergency medicine that can have lasting side-effects