Zee Media Bureau
Government is exploring ways to allow banks more flexibility in loan restructuring to get stalled projects on track, Reserve Bank of India (RBI) Governor Raghuram Rajan said on Tuesday.
"This is a risk we are prepared to take if it allows more projects to be set on the track to recovery."
Banks have seen a sharp rise in bad loans after India posted sub-5 percent growth for two consecutive years and have been urging the central bank to provide them with relaxations on classifying bad loans.
Taxpayers forced to pay the ultimate price because of defaults by large borrowers, Rajan added.
Our credit system is not healthy and needs fundamental reforms, said Rajan.
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