Amid growing clamour for farm loan waivers in some states; RBI Deputy Governor S S Mundra today refused to comment on the issue saying that any general statement in support or against loan waiver will not be appropriate. <br/><br/>Speaking to reporters on the sidelines of a Bandhan Bank event in Mumbai; Mr. Mundra said it is important to look whether the waiver is case specific or whether it is circumstance specific. He added that even in case of credit to large borrowers, there are restructuring schemes which are implemented rather than waiving off loans. <br/><br/>Mr. Mundra, however, added that RBI has been traditionally concerned over farm loan waivers because of its impact on "credit discipline".<br/><br/>On the issue of bad loans; Mr. Mundra said there is a need to further strengthen existing mechanisms like oversight committees and joint lenders forums for better resolution of stressed assets. Mr. Mundra said the March 2017 deadline of tiding over the bad assets problem is in course with the banks meeting quarterly targets. <br/><br/>He added that RBI would like the banking system to remain well capitalised at all times and a bank's asset book should reflect their actual position. <br/><br/>

Amid growing clamour for farm loan waivers in some states; RBI Deputy Governor S S Mundra today refused to comment on the issue saying that any general statement in support or against loan waiver will not be appropriate. <br/><br/>Speaking to reporters on the sidelines of a Bandhan Bank event in Mumbai; Mr. Mundra said it is important to look whether the waiver is case specific or whether it is circumstance specific. He added that even in case of credit to large borrowers, there are restructuring schemes which are implemented rather than waiving off loans. <br/><br/>Mr. Mundra, however, added that RBI has been traditionally concerned over farm loan waivers because of its impact on "credit discipline".<br/><br/>On the issue of bad loans; Mr. Mundra said there is a need to further strengthen existing mechanisms like oversight committees and joint lenders forums for better resolution of stressed assets. Mr. Mundra said the March 2017 deadline of tiding over the bad assets problem is in course with the banks meeting quarterly targets. <br/><br/>He added that RBI would like the banking system to remain well capitalised at all times and a bank's asset book should reflect their actual position.