HYDERABAD: Raghuram Rajan, Chairman of Committee on Financial Sector Reforms, has described the massive loan waiver scheme of the Union Government as a disaster “as it will spoil the credit culture in the country.”
Delivering a special address at the Indian Banking Conference organised by the Indian School of Business (ISB) here on Friday, Mr. Rajan said: “After 15 years of getting away from the problem, the Government has vitiated it again.” Quoting extensively from the committee’s report, Mr. Rajan said that the Reserve Bank of India (RBI) should focus more on inflation rather than worry about exchange rates. The Planning Commission was working on a unique national ID number for people with biometric identification. This would facilitate banks to tag on the details of any borrower to the national ID so that the credit history of the customer would become collateral for future borrowings.
