Loans to 2G licencees given as per norms: RBI

The Reserve Bank does not see any major problem for banks in recovering loans lent to 2G spectrum licence holders, due to the scam, a top central bank official said in Paramakudi on Monday.

All loans had been given following normal procedures, RBI Deputy Governor K.C. Chakraborty told reporters at Vendoni village near Paramakudi.

He said the RBI had verified and no improper sanction of loan to companies, which obtained 2G spectrum licence, had come to its notice.

“I don’t see any major problem for the banks who have lent money for 2G spectrum licence holders. There is no chance of any loan (to 2G spectrum licence holders) going NPA (non-performing assets). We will be able to recover the loans.”

To a question on licence to new banks, he said “It is a big process and it will take time.”

He said draft guidelines are being discussed.

“After the guidelines were ready the applicants should have to apply to the committee, to be set up for the purpose, and they should decide,” he said.

On spiralling food prices, he said prices of essential items would come down only with more production and hard work.

“The government says there is single digit inflation.”