Excelsior Correspondent
Srinagar, Mar 27: Kashmir Economic Alliance (KEA) today said that it was unhappy over the RBI’s contingency measurers for deferment of interest component of working capital and other loans.
Vice President of the KEA, Mohammad Iqbal Trumboo in a statement issued here said: “it makes banks immune to losses and makes borrowers more vulnerable to extinction. In the past too it has not helped banks sail through; that is why we see mergers and takeovers of banks and rise in NPA levels throughout the country.
He said that it was high time that RBI comes out with a complete revamping of its guidelines.
“Let the country’s best and fertile minds remake the guidelines of the RBI so that the borrowers and banks have a win-win position even when we encounter unprecedented situations like we are in now,” he said.
What does deferring of interest mean when businesses are shut and are not even functioning, he said, adding that such guidelines and decisions are irrational and have adverse effect on economy including banks and borrowers.
He said that the Government needs to do more about working of RBI and its guidelines which “we feel have not yielded the required results example being the economic condition of Jammu and Kashmir even before the great lockdown of the country.”
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