COMMENTS NO: YEAR/2017/1164

“MANAGER OF A NATIONALIZED BANK: '99% of the 500 rupee note and 1000 rupee 
note issued by RBI has come back to RBI after demonetization. It indicates 
two things. Firstly, the black money has been whitened up very efficiently. 
For example, say, a businessman having 50 employees under his company 
distributed the black money in the form of Advance Annual Salary to each 
of the 50 employees to whiten it up. Secondly, the whitened form of the 
black money has been directly infused into the Indian economy by 
depositing it in the banks, though, many of those money has been withdrawn, 
but still, a majority of businessmen came under 
the radar of Indian Taxation System.' 

OFFICER OF A NATIONALIZED BANK: 'Now, the time is ripe for the Indian 
Government to do recovery of Non Performing Assets by motivating the 
PSU Banks with some aggressive steps. As you said in a branch meeting last week 
that all the bad loans of every bank customer must be recorded in CIBIL. 
Side by side, without a PAN Card and a CIBIL report, not a single Bank in India 
should give loans to any customer. If the defaulter is a salaried person of any 
organization, then Indian Government must give the permission to that 
organization to block the monthly salary of that person unless and until that 
person repays the desired amount to remove the loan account from 
IRAC-7 to IRAC-0. For example, say, a primary school teacher has taken a loan 
which is now a NPA, then the Headmaster of that school has full right to write a 
letter to the higher authority to block the monthly salary of that primary school 
teacher till he repays the money. Aggressive Recovery of bad loans and effective 
taxation system is the need of the hour in India.'”- Arindam Sain