The employees union of the Reserve Bank has, in a surprise move, backed governor Urjit Patel’s for his stern action to stem the bad loan problem and other ills plaguing the public sector banks, and urged him, in a letter, to continue to actively monitor banks as an ‘alert inspector’ and not just as an ‘off-site surveyor’.
The union support has come as a letter to the governor on Thursday from the All-India Reserve Bank Employees Association.
The move also comes within days of the bank officers unions moving the Delhi High Court challenging the RBI decision to ask banks to refer the 40 largest dud loan accounts to the bankruptcy courts, saying the move will wipe out banks balancesheets which may also have a cascading impact on their jobs. These 40 accounts constitute over 40 per cent of the dud loans in the system.
Earlier this week, the RBI governor had appeared before a Parliamentary panel.