INDIA HAS BECOME MORE ASPIRATIONAL. WE ARE NOT SATISFIED. WE WANT MORE
we are going to amend the Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) and DRT (debt recovery tribunal) laws in order to make recoveries faster. So they have to come in tune with the bankruptcy law. I am endeavouring to introduce it in this session. Additionally, we had a meeting of state finance secretaries so that states start spending right from first quarter and spending is not merely distribution of cheques. Spending is actually into agricultural sector, social and infrastructure sectors.
The Budget had a strong rural package. How soon do you think its impact will be felt? Irrigation will be the first to show its impact. Electrification is beginning to show its impact. Swachh Bharat in schools is beginning to show some impact. Our financial inclusion schemes have seen a thunderous impact.
Stress continues in the banking sector. Public sector banks (PSBs) are not comfortable opting for haircut through one-time settlements… There are two things taking place. We have to create both political and economic environment for banks to have a healthy recovery. And that can’t take place in an environment of suspicion. Business losses caused the twin balance sheet problem. So you have to address the sectors and reverse the cycle. I think that’s more important. And, banks must have flexibility to settle. And, settlements can’t be looked at with suspicion. So, how do you empower bank managements to go in for one-time settlements? I think by amending the Prevention of Corruption Act and creating an ombudsman-like mechanism. These both together will help. This would be a body which would cushion bank officials on settlements.
In the Kingfisher Airlines loan case, Vijay Mallya hasn’t appeared before the Enforcement Directorate (ED). What are the options on the table going forward? ED will decide. I think all these bodies, whether it is the ED or the bankers, they will decide strictly and in accordance of legal provisions. Banks will go ahead and decide whatever is in the larger interest of the