Reserve Bank of India deputy governor KC Chakrabarty said banks should cut all banking channels of willful defaulters to prevent rising loss of assets. Chakrabarty said banks should make use of the credit information bureau to share details of wilful defaulters and shun them entirely.
"Close all their bank accounts. Don't allow them to do any banking transaction," Chakrabarty said in Kolkata at an event organised by MCC Chamber of Commerce & Industry. RBI has declared a war against rising bad loans ever since Raghuram Rajan took charge as governor in early September.
Rajan said that no promoter has the "divine right" to abuse the banking system.
RBI's
statistics show that net non-performing assets ratio (NPA) of all
banks taken together risen to 1.68% of the total loan at the end of
2012-13, from 1.28% a year back.
Net
NPA of the 26 public sector banks, including State Bank of India,
rose to 2.02% during the year as compared to 1.53%.
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