The Daily Fix: Vijay Mallya case shows how India jumped from crony socialism to crony capitalism

NPA = Non Performing Assets ( bank loans not being repaid )

NPB = Non Performing Bankers  ( bank officers not being prosecuted )

Recently , Supreme Court asked RBI for a list of entities , who are defaulting on loans of Rs 500 Crores or more

Suddenly , a few banks started publishing  lists of their own loan defaulters

What is the big deal ?

Several thousand Cooperative Housing Societies in Mumbai , have been , routinely publishing on their Notice Boards ( equivalent to the web sites of the banks ? ), names of society-members who have failed to pay their monthly society charges ( includes Municipal Property Tax ) - including cumulative arrears

They have been doing so for years . I don't know if Model Standing Orders or Cooperative Society Act requires this

But no member seems to object this act of " Name to Shame " !

What has prevented banks from routinely declaring on their web sites :

*  Complete list of all loan-takers ( Companies / Individuals / Trusts / NGOs etc  )

*  Full details of loans ( amount / duration / interest rate / collaterals / repayment schedule / sureties etc  )

*  Names of bank officers who scrutinized and sanctioned loans

*  Cumulative arrears ( shown graphically )

*  Other entities ( including other Companies / Individuals ) inter-connected with the defaulters

*  Details of Notices sent / Court cases filed / Recoveries made / Blacklisting done , etc

After all , most banks have PUBLIC as shareholders and therefore , need to be covered under RTI Act

If a bank is owned ( partially or totally ) by any government ( Central or State ) , it is covered under RTI

So , why this secrecy ? Why this dragging of feet to take prompt action against defaulters ?

I recently heard of a Cooperative Housing Society in Hyderabad which has solved the problem of members defaulting on payment of society charges

In members' flats , Society has installed ELECTRONIC DIGITAL PRE-PAYMENT METERS

On 1st of each month, a member must key-in the amount ( of Society charges ) in the Meter and authorize deduction from his bank account ( like Mobile Wallet , in collaboration with many banks concerned )

Failure to do so will immediately result in automatic cutting off the electricity and water supply to that flat !

I suppose Andhra / Telengana State Cooperative Society Act permits this. Why progressive Maharashtra does not ?

It is no Rocket Science to extend the application of this  SIMPLE TECHNOLOGY  to bank loan defaulters !

By automatic freezing of personal bank accounts of ALL those who signed the loan document ( takers & givers ) , the moment any repayment installment becomes overdue by ONE DAY ? Also automatic revoke of PASSPORT  ?

I hope RBI governor , Shri Raghuram Rajan , gets to read my blog and floats a Request for Proposal to Infosys / Wipro / TCS etc

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hemenparekh.in / blogs

09  March  2016

hemen  parekh

www.hemenparekh.in

Marol , Mumbai , India

hcp@RecruitGuru.com

( M ) +91 - 98,67,55,08,08