Reportedly former bank OF INDIA' target='_blank' title='rbi-Latest Updates, Photos, Videos are a click away, CLICK NOW'>rbi governor raghuram Rajan has said that the central government’s priority should be to strengthen the non-banking finance companies (NBFCs). Meanwhile in his latest interview to business channel he said that NBFCs must be provided with the capital required for them to resume their lending activities. Furthermore in his opinion, this is crucial to drive the economy back to the growth track and he wants the government to accelerate the cleaning up of banks and NBFCs.
Further there have been words exchanged in the media recently between the current Finance minister nirmala sitharaman and former Prime minister manmohan singh over the economy. Apparently nirmala sitharaman had replied to a question put by a reporter when she was in the US that the NPA mess in the banks in india was created when manmohan singh was the PM and raghuram Rajan was the bank OF INDIA' target='_blank' title='rbi-Latest Updates, Photos, Videos are a click away, CLICK NOW'>rbi Governor.
Moreover according to him, a lot of investments that ended up as NPAs happened in 2007-08 and these investments created a lot of bad loans that needed to be cleaned up to help spur lending. Hence during his tenure, bank OF INDIA' target='_blank' title='rbi-Latest Updates, Photos, Videos are a click away, CLICK NOW'>rbi asked troubled Indian lenders to clean up their books. He told “There’s a clean-up which we started, which is underway, which needs to be completed fast”.
