OUR CORRESPONDENT / NEW DELHI
UNION Finance Minister Arun Jaitley today asked the states to generate funds from their own resources for farm loan waivers.
He also made it clear that the Centre would not be part of a state’s fiscal leverage in waiving farm loans and the cost has to be borne by the states.
Jaitley said that the RBI was actively working on Non Performing Assets resolution and action will be taken soon in this front.
Talking to media after meeting heads of PSU Banks in New Delhi, the Finance Minister said RBI was at a fairly advanced stage of preparing a list of borrowers where NPA resolution is required under the insolvency law.
The ordinance was promulgated last month amending the Banking Regulation Act to empower the RBI to resolve the issue of NPAs or bad loans.
The government empowered the RBI to ask banks to initiate insolvency proceedings to recover bad loans and promised more measures to resolve the NPA problem.
On GST preparedness of the banks, the finance minister said various issues related to this will be discussed with the revenue secretary later.
Replying to a query, he said, the government is actively working towards consolidation of banks. He added that consolidation of banks was not on the agenda during today’s meeting.
Other issues that were discussed at the meeting were financial position of public sector banks and review of all financial inclusion schemes and cyber security.