The investigation agencies in their enthusiasm to book “errant” bankers should be careful to make a clear distinction between those who have acted in a malafide manner/violated the laws and those who, in a bonafide manner, misjudged the situation while lending. The investigation agencies must develop the expertise to make a distinction between the two aforesaid situations. If necessary the views of the Reserve Bank of India can be taken in the matter. Scared bankers who feel there is a witch hunt on will not lend irrespective of the meetings they attend which are convened by the Finance Minister and Secretary DFS. Rounding up all and sundry without carrying out comprehensive reforms of the PSBs is undesirable. We must realise here not only the reputation of the heads of PSBs is involved, but the capacity and the ability of the investigation agencies to correctly investigate and prosecute offenders is involved. These agencies should exercise operational independence in their work.
Arun Pasricha Delhi
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