Thursday, January 1, 2015

Where is regulation?

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:

Unknown said...

The PSU banks are a law unto themselves as they resort to all the dirty tricks in the books

Kuruvilla
January 2, 2015

TVG KRISHNAN said...

Very rightly said. This has been going on for decades unquestioned.