The Supreme Court has been moved for a direction to RBI and other commercial banks not to allow such write off for political gains.
New Delhi: As the practice of loan waiving adversely affects the economy by increasing the fiscal deficit due to technical writing off of Non Performing Assets (NPAs) by Banks, the Supreme Court has been moved for a direction to RBI and other commercial banks not to allow such write off for political gains.
In a PIL, advocate Mrs. Reena. N. Singh urged the court to refrain the banks from doing Technical write off of NPAs and also to ensure transparency and fairness regarding usage of public funds which belongs to countryes economy. The petitioner pointed out that political parties are offering loan waiver schemes in their election manifesto for their political motives by ignoring the negative effects of loan waivers on the Economy, as they are using the offer of manipulation of public fund as a tool to achieve their political motives to come to power. The political parties are offering to waive the loan from the government exchequer gathered by taxation and not from their political party funds.