Vice-Chairman Kashmir Economic Alliance (KEA) Mohammad Iqbal Trumboo in a statement on Friday said they are unhappy over the RBI’s contingency measurers for deferment of Interest component of working capital and other loans.
Trumboo in a statement said, it makes Banks immune to losses and makes borrowers more vulnerable to extinction.
“In the past too it has not helped banks to sail through that is why we see mergers and takeovers of banks and rise in NPA levels throughout the country,” Trumboo said.
Trumboo said, “It is 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”.
“What does deferring of interest mean when businesses are shut and are not even functioning for a second. How does RBI expect to pay this deferred interest when the businesses have not earned anything,” Trumboo said. He said, such guidelines and decisions are irrational and have an adverse effect on economy including banks and borrowers.
Suggesting reforms, Trumboo said 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. He said Kashmir has experienced lockdowns for the last 30 years and RBI guidelines have taken economy of Kashmir into a total collapse.