The Government's meddling tilts the Public Sector Banks
Public Sector Banks (PSUs) have still facing tribulations shimmering from debt wavier of 2008. Meanwhile the government has made another plan to provide overdraft facility or term loan up to Rs.10, 000/- to agricultural land less labours.
PUBLIC SECTOR units (PSUs) are still facing tribulations shimmering from debt wavier of 2008. Meanwhile the government has made another plan to provide overdraft facility or term loan up to Rs.10, 000/- to agricultural land less farmers. These credit facilities will be provided to them on the basis of guarantee of another agricultural landless labour. The banks will not compel them to mortgage their properties against the said loan.
The Government’s intention behind this exercise is to increase consumption level of workers. The Congress-led government opines that landless agricultural labourers in villages are not capable to survive due to rising inflation. Even, they are incapable to fulfil their everyday requirements smoothly. To put together bread and butter on regular basis is beyond their capability. The government fears that if the stipulation does not improve, growth will be sluggish. Since monetary and fiscal measures have failed to provide the pace of development intensity. The Government feels that by adopting non-traditional methods, they may be successful in its objectives. In 1980, the PSUs had been selected by the government for escalation of welfare plans at grassroots level. In this way the loans were distributed by PSUs at that time were drowned later on. To complete the cycle of Government’s welfare plans, PSU’s profit has always remained in stagger. Levels of Non Performing Asset (NPA) have also augmented significantly. Despite, the government is going to make the same blunder again. The recent statement of the Congress-led UPA government is going to create confusion and controversy. The one side it is forcing the PSU’s to issue Kisan Credit Cards (KCC) in more and more numbers to honest farmers, whereas it was disseminated debt waiver in 2008 among tainted farmers. How will two contradictory aspects come together in same platform? Anyway, the government is saying that it will generate demand for diverse products through this work out and it will result in the production of more food grains. Clear that it will strengthen the economy and rural India can be saved from impending recession. The debt waiver of 40, 000 million rupees was dispersed among defaulted farmers in 2008. Whole process was completed keeping in mind arriving general election of parliament in 2009. It was just gimmick of appease the certain class of rural India, So that, they could manage their win with comfortable margin in election. Obviously the debt waiver has not yielded any affirmative domino effect. Most beneficiaries of loan waiver are still deceitful. Yes, some farmers were truthful, but they have also become fraudulent. Today, finding an honest farmers just like an exercise of finding gold particles in sand. Bankers and rich farmers were manipulated the fund of debt waiver profoundly. Their modus operandi was simple. The Bankers were prepared forged list of eligible farmers and in that list, they were included the name of influential farmers and after getting the fund of debt waiver, they circulated their share among like minded Bank’s employees & farmers. Lately internal auditors of APEX Bank of Madhya Pradesh have disclosed fraud of million & million rupees in delivery of debt waiver scheme of 2008. Several cases of incorrect data of eligible farmers submitted by banks have come to light. Deliberately advantage of debt waiver was prearranged to inept farmers. The entire process is glare example of ignorance of Bankers concerning circulars of debt waiver or is also sheer violation of RBI’s guidelines. It seems that the government has not learnt the lesson from Bankruptcy of Maharaja. In 1980, profitability margin of PSU’s was under stress on account of such kind of welfare schemes of the Government. Nobody denies the importance of welfare schemes in democratic country like India, but its benefit must be reach up to beneficiaries also. In present circumstances, advantage goes in the pocket of brokers, leaders or corrupt officials. Hence, the Government should not turn away from its duty. Of course, the same is brought to the beneficiaries' benefit.
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