After all, why RBI has changed the rules of defaulter, there is no connection with 2000 note!

Banks have piled up liquidity. The Rs 2000 notes worth Rs 3.60 lakh crore which were frozen have now started coming back. According to statistics, more than 50 percent of the notes have been returned to the banking system.

After all, what kind of magic wand has come to the Reserve of India (RBI) that it can swing and the bank defaulter becomes clean in a jiffy? The situation does not end here. The defaulter with whom the bank used to make settlement and used to make them chew gram to give loan again, the situation should come to get loan immediately. Yes, RBI has made such a rule and has clearly told the banks to settle with the willful defaulter and close the loan by taking the settled amount in 12 months. If he needs a loan again, give him a loan as well.

Such situations have never come in Indian banking history before today. Not even when Prime Minister of the country, Narendra Modi had demonetised Rs 1000 and Rs 500 notes 7 years ago and there was a flood of liquidity with the banks of the country. Was. This time the government is ready to teach a new lesson of banking sector to the people of the country through RBI. Last month, RBI announced to stop the circulation of Rs 2000 note and talked about making deposits or exchanges in banks. The people of the country started queuing up outside the banks like obedient students and within a few days more than half of the Rs 2000 notes frozen outside the system were returned to the banking system.

It rained money in a short time and is not taking the name of stopping. Repo rate freeze. Because of which the loan demand is less. Banks have started reducing deposit rates. The number of small defaulters in the country has reached lakhs of crores. Which banks have blacklisted in a way. The special thing is that these people have not become defaulters intentionally. Time and circumstances made him a defaulter of the banks. Now RBI will take such people out of the category of defaulters and will also give them loans if needed.

Banks problem will go away

Banks have piled up liquidity. The Rs 2000 notes worth Rs 3.60 lakh crore which were frozen have now started coming back. According to statistics, more than 50 percent of the notes have been returned to the banking system. Time till 30 September. Banking officials say that soon they will also come back. The question is, how will we spend this money? Because soon banks will create an increase in loan demand. For this reason, by settling with the loan defaulters, they will be cleaned and loans will be distributed to maximum number of people. Due to which the problem of banks will be reduced.

Understand the new rule of RBI in these points

1. RBI has permitted banks to settle cases of fraud accounts and willful or willful default through settlement to maximize recovery from stressed assets.

2. According to the notification of RBI, while approving settlement in cases of fraudulent accounts and willful default in loan repayment, it has been said that for this policies will have to be made at the level of the board of directors.

3. Some necessary conditions have also been prescribed in this regard. These conditions will also include aspects like the minimum tenure of the loan, the decline in the value of the property kept as collateral.

4. The board of directors of banks will also decide a format for checking the accountability of their employees in such loans.

5. In respect of accounts categorized as willful defaulter or fraud by the Reserve Bank, the Regulated Financial Units may enter into settlement or technical write-off without prejudice to the ongoing criminal proceedings against such defaulters.

6. The bank will also prescribe a calculation method in the resolution policy to calculate the realizable value of the secured assets. With this, it will be possible to decide that maximum recovery can be made from the distressed borrower at the minimum cost.

7. Accordingly, any such recovery claim marked in the books of regulated entities shall be treated as restructured debt as per extant guidelines.

8. Apart from this, in case of settlement by agreement, a cooling period will be kept for giving new loan to the concerned debtor, so that the risk of banks can be reduced. In case of loans other than agriculture loan, this period can be up to 12 months.