In a newspaper, recently it was reported that the Maharashtra Chief Minister asked the administration to initiate criminal proceedings against erring staffers of financial institutions for refusing financial aid to farmers in distress. It was also reported that immediately the bank union has condemned the move since it is not binding on a financial institution to disburse loan to a farmer. According to me, both are right in their respective statements.
It is like this. The bank or its employees have two set of standards for giving loans, one for the super-rich defaulters and another for common man who generally repay it. Bank employees are very kind to sanction loans to the super rich which later on become NPA/BAD LOAN. Only for the second category COMMON MAN they are very strict to sanction the loan. For them, they have rules and regulations and so many other things to be fulfilled - that too they will tell you in piece meal so that finally you would be exhaust running after them and finally you may or may not get the loan.
Our past and present Union Finance Ministers are also very eager to help those banks who created maximum NPAs from the tax collected even from the beggars on the street through the excise duty etc. levied on simple items they use. In this background there is nothing wrong in the request of the Maharashtra Chief Minister. Actually, the NPA creating employees – mostly executives – should be prosecuted for sanctioning such soft loans to the super rich without proper checks and dillydallying even the recovery process.