The move to computerise DRT's operations is good but will it help to improve the recoveries of loans is doubtful. As it is,the expenditure incurred to maintain the bad debts in banks books and recover the dues throgh various means is very high and is by and large borne by the stake holders of banks and by the society through tax.It is time a serious study is made on the over all cost incurred by banks and by the Govt due to the borrowers indiscipline and banks'lackadaisical approach in disciplining and educating the borrowers to conduct the loan accouns satisfactorily as the money enjoyed by them belong to general public and they have no right to misutilise them.Genuine business failures are understandable but bad debts arising out of such failures are very few and far between.It is time the cost of bad debts is passed on to the borrowers by banks by rating them and levying a small penalty based on their performance.The other stakeholders of banks should take up the issue with RBI&Govt
Dr.T.V.Gopalakrishnan
(This comment got published in response to an article FM considers Computerisation of DRTs to improve Recoveries appeared in Business Lines dated 14/11/12)
