Why hesitate to discipline the bad borrowers and the erring banks

Disciplining the borrowers and erring bankers who encourage and support knowingly defaulting borrowers is what has been emphasized with a practical suggestion to contain the formation of NPAS in banks and save the depositors , taxpayers and employees from the rotting banking system in the book Management of Non Performing advances published by the Indian Institute of Banking and Fiance way back in 2004. Had the suggestion been accepted and implemented, the economy and all its stakeholders particularly the Government would have benefited a lot and the issue of NPAs would not have been a threat. Vested interests somehow kept aside the suggestion and now through Dr Rajan some of the solutions indicated in the book find acceptance. Even now it is not too late as the suggestion given in the book in the form of statistical model if implemented with the aid of IT can be a permanent and reliable remedy to contain NPAs in banks. Dr.T.V.Gopalakrishnan (This comment has appeared in Business Line dated 23rd December against the article Reserve Bank comes down hard on evasive borrowers )