Karnataka - Bellary   

‘Asset recovery process being monitored’

BELLARY: Regional Director of the Reserve Bank of India Devaki Muthukrishnan has said that there are enough guidelines and safeguards to regulate the process of asset recovery by private banks and they are being regularly monitored.

Ms. Devaki, who was here to inaugurate the first branch of the Souhardha Urban Cooperative (SUCO) Bank, was speaking to presspersons on Monday.

On the farmers’ suicides in Mysore, owing to the alleged pressure from ICICI Bank and its recovery agents, she said the district administration had to verify the reasons for the suicides, including violation of guidelines.

“The guidelines and safeguards are there and they are being followed. The need to bring in changes arises only when more such incidents occur. The RBI would wait for the district administration’s report on the issue and then take steps,” she said.

Ms. Devaki said the Task Force on Urban Cooperative Banks had been effective in ensuring the non-disruptive exit of weak banks and also safeguarding the interests of customers. Under the task force, the process of merger of weak banks with strong banks was being undertaken fast owing to collective decision-making.

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