Regulation in and of banks has failed is clear from the fact that banks recklessly
grant loans, spend liberally on establishment and legal matters to
maintain the bad loans in the books, effect write offs without exploring
all possibilities to recover the loans from sureties, guarantors and
sale of properties. Besides, the ease of doing transactions at banks has
been vanishing as the costs are increasing day by day without being
questioned or resisted even. The charges levied on ATM transactions and
convenience charges a latest entry for booking air tickets using
plastic cards are nothing but the reflection of inefficiency in reducing
the cost of operations and cost of funds thanks to high levels of NPLs
and heavy expenditures under various heads without any control. The
regulation is a failure and in the name of regulation resorting to
levying exorbitant charges on normal services despite the reduction
expected in the cots thanks to invasion of technology is nothing but a
paradoxical situation.
Dr.T.V.Gopalakrishnan
(This comment appeared in BL dated2/1/15 against the article When the regulatory apparatus falls flat)
2 comments:
The PSU banks are a law unto themselves as they resort to all the dirty tricks in the books
Kuruvilla
January 2, 2015
Very rightly said. This has been going on for decades unquestioned.
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