Opinion
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Letters to the Editor
Public sector banks
Sir, — The article by R. Viswanathan `What ails public sector banks?' (Jan. 17) was an eye-opener for the public at large who hardly know the nuances in banking and its procedures and methodology in sanctioning loans. The public hardly knows the responsibilities of the persons in charge and that of the board of directors and also the accountability of the RBI.
The RBI has in many cases fumbled and bungled mainly because of the political bosses who control it. It is indeed a shame that the Finance Ministry has hardly the time to check these inadequacies until a question is raised in Parliament. Take the case of the Indian Bank, where the Reserve Bank did not take action for years.The powers vested under the statute are essentially to monitor the banks functioning and take appropriate action at the proper time. The persons who were responsible for sanctioning the loans go scot-free while the others who have handled the proposal are to suffer harassment. Will the judiciary ever apply its mind as has been done by Justice Dinakar in the case of Jayalalithaa, where the judge rightly questioned the prosecution about the collective decision taken by the board. Likewise, the case of the muddle of the UTI's US 64 where the board of trustees was spared while the Chairman was taken as accused. These are blatant violations.
V. Venkatram,
Chennai
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