Wednesday, November 28, 2018
RBI Board Meeting on 19/11/2018
RBI has given press release at 9'o clock in the night about board meeting on 19/11/2018.
One point which attracted my attention was stress asset of MSME below 25cr. I was waiting for 3 days to hear for further announcements. At this moment, I could not lay hands on.
So, I am writing here my view.
1. According to me, stressed asset below 25cr, means job retention in MSME and as on today, all public sector banks have delegated powers to the level of regional manager and or Deputy General Manager.
2. During the last 3 years, I hear that often under pressure from their higher up's, the only job of this regional manager or DGM is to recover. It is very convenient for them to transfer the file from the operations departo asset and once the file goes from operations to stress asset, no way it can come back & officers in stresses assets are not trained for revival. So when RBI announces new measures for resolving stress assets, they should see that it is implemented in right earnest.
3. In March 2.016, RBI has instructed for resolving MSME loans but my discussion with banks at the branch and regional level indicates their attitude only for recoveries and they prepare files in such a way that entrepreneur is killed andis lost.
Once again I request RBI, Bank boards and chairman to consider the ground level realities before formulating guidelines/directives.
Ease of Doing Business
About a couple of days back, Honorable Prime Minister Narendra Modi called few industrialists and govt officials and praised for improvement and said that now it has to go to the district level. Percolating down to district level will definitely help to improve.
But I do not understand why we should worry about EODB? Is it to increase employment in the economy? Or to increase per capita income? Or any other motive. As the net saving rate is falling, dependence on foreign capital is the need of the hour.
Shri Narendra Modi has to restructure the old mindset of the middle level of govt staff and I can assure that by reducing old mindset of babushahi and efficient working using modern technology like Blockchain will definitely improve EODB by at least by 10%.
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