The then Finance Minister late Mr. Arun Jaitley & the present Finance Minister Smt. Nirmala Sitharaman used to say that the Insolvency and Bankruptcy Code (IBC) will prove to be a game changer. Indians are scared of stigma & thus borrowers will come forward & will pay back. Now the emerging picture is something different. IBC has become an escape route for the big corporates since they are being bailed out. In the process banks are losing precious money & it is therefore that the government is required to infuse capital in the public sector banks repetitively by providing for in the budget with scarce resource which otherwise could have been used on social sector spendings such as health, education, social welfare etc.
Government & RBI together have evolved this structure of IBC with due approval of the parliament. Are parliamentarians aware of the consequences? If RBI & IBC are acting contrary to the intent of the parliament, are they not answerable & accountable? This is nothing but abuse of the common man who is struggling hard for his bare minimum needs such as Roti, Kapda & Makan.
In the process of privatisation it is the same big corporate who is likely to be the owner of public sector banks. This is high time that people’s representatives, political parties & their leadership who stand for pro people policies, academicians, vocal section of the society should rise to the occasion & save the banking sector to save the economy. It does not mean that the present structure or state of affairs should continue as they are.
Yes, there is a need for change, but only by continuously focussing on the needs of the common man.
Devidas Tuljapurkar is the General Secretary of MSBEF
Picture courtesy: @idesibanda/Twitter
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