Agencies
Aizawl, Oct 15: Reserve Bank of India Governor Raghuram Rajan said Thursday the RBI would take a close look at the asset quality of lenders, while calling on them to recognise all bad loans and put assets back to work after talking with company promoters. The comments are the latest by Rajan pushing lenders to deal with their pile of non-performing assets as the government pushes for increased corporate investments.
Rajan said the RBI was also working with the government to find ways to ensure a fuller transmission of interest rates. The RBI has eased the repo rate by 125 basis points so far this year, including a bigger-than-expected 50 bps cut late last month. He was addressing a news briefing after the conclusion of the RBI board meeting in the northeastern state of Mizoram.
Meanwhile, he also welcomed Supreme Court ruling on use of Aadhaar card in more schemes and said it will help in financial inclusion drive and providing easy access to loans. “The Supreme Court ruling Thursday on Aadhaar card will be
quite helpful, making us use it in banking services. It will make easier for financial inclusion,” Rajan told reporters after the central bank’s board meeting here. With an UIDAI number, a person will be able to open a bank account as it will work as an identification document and will help in easier access to loans, he added. “UID will ensure that people will not get multiple loans from different places. We can make sure that it does not happen. This is an example on how we can make more lending possible,” said Rajan, who was in the city for RBI’s 554th Board Meeting.
The Supreme Court Thursday permitted voluntary use of Aadhaar card for schemes like MGNREGA, all types of pension schemes, PM’s Jan Dhan Yojana and EPF. While modifying its earlier order restricting use of Aadhaar for PDS and LPG only, the apex court ruled that Aadhaar card scheme would be purely voluntary and not mandatory till the matter is decided by the court. “What we need is responsible lending and responsible borrowing, and much of our effort on financial inclusion is on how to make that happen,” Rajan said. He also said that RBI is working with the Finance Ministry to increase capital infusion in the banks. “The government had announced this to be Rs 25,000 crore. Some banks have got it and some will get it soon. It is almost done,” he added.
