Home » New banking ordinance a welcome step, but inadequate |CSE

New banking ordinance a welcome step, but inadequate |CSE

New banking ordinance a welcome step, but inadequate |CSE

Centre for Science and Environment (CSE) is perhaps the only agency in the country which argues that environmental and social issues are closely linked to one of the biggest bugbears that is plaguing Indian banks today – NPAs, or non-performing assets.

Recently, President Pranab Mukherjee passed the Banking Regulation (Amendment) Ordinance, 2017. The ordinance confers more powers on banking regulators to address the NPA crisis: currently, banks are struggling with bad loans amounting to a gigantic total of Rs 9.64 lakh crore!

CSE strongly believes that the rising number of NPAs is also because of banks’ failure to manage environmental and social risks – the new ordinance is silent on this.

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