Dig deeper, not wider, for defaulter data

UPSC Practice recommends Dig deeper, not wider, for defaulter data.

The data (details of defaulters, asset classification, fraud, etc) gives a larger picture of the borrowers’ liabilities across the banking system. It enables banks to identify stress in the account and take pre-emptive steps to safeguard their interests. But credit decisions involve judgement of risk, and bankers must do their job. Intelligence agencies are not equipped to advise banks on complicated commercial processes. Any ham-fisted scrutiny would also incapacitate banking.

Courtesy: ET Editorial-Opinion-Economic Times

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