May 20, 2024

SC advises govt to revamp banking system

The Supreme Court of India on last day advised centre government to revamp the banking structure, citing a RTI report published in a national daily which revealed that at least 1.14 lakh crore rupee was written-off by the banks in last three year.

Meanwhile, the court identified that the improper system has virtually helped the defaults to escape from the burden of repayment.

In order to bring an implementable solution to the issue, the court demanded a sensible approach from the government to overcome the crisis.

Earlier, the Indian Express daily reported that the public sector banks had written-off nearly one lakh crore rupee in the last three years.

The court found that the banking sector is currently not working in a proper manner. In addition, it indicates that there is something missing in the entire system.

The report regarding the written-offs of public sector banks was published on last February.

Subsequently, the court had voluntarily registered a case and sought explanations from respective agencies.

It is learned that the court demanded explanation from the central finance ministry and the public sector banks.

Notably, the renowned lawyer and politician, Prashant Bhushan, has appeared in the court for a PIL petitioner.

In his statement, he requested the court to issue proper directives to create a productive and accountable banking system in the country.

Meanwhile, Solicitor General claims that the government is planning to develop a bankruptcy code to sort out the issue.

Anyway, he admitted that there are some problems in the banking sector.



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