Rajan’s List of Wilful Defaulters No Doubt Has Some Worried

With Raghuram Rajan announcing his RBI exit, his earlier claims of listing wilful defaulters gain prominence.

Finance Minister Arun Jaitley with outgoing RBI Governor Raghuram Rajan. (Photo: Reuters)

The outgoing Governor of the Reserve Bank of India (RBI) Raghuram Rajan may compile a list of wilful loan defaulters before he leaves office on 4 September, reports The Telegraph.

On 7 June, Rajan had hinted to the possibility of a list which would name loan defaulters. The threat looms large now as Rajan claimed, in a letter announcing his exit, that he is open to tidying up the finances of banks which are over-burdened by unpaid loans.

In a letter to the RBI employees, Rajan announced that he will be returning to academia after his term ends.

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During a lecture in Delhi, Rajan had hinted that the RBI was putting together a list of wilful defaulters:

As a regulator, we have no intent or desire to protect malfeasance... We are very happy to make that list public. In fact, my people are working on making sure that we can put that list up in an accessible way and also (of) defaulters against who suit has been filed, because that is already public information.

However, he has repeatedly said that the central bank does not wish to create problems for defaulters who have not indulged in wrongdoings.

Also Read: 7 Quotes by Raghuram Rajan That Show Who’s the Boss