Eco crisis: PM must act fast

The slowdown also indicates the failure of the banking system. Of late, the banks found it easier to lend money to NBFCs and microfinance companies than to get their hands dirty by lending to people directly. If banks lend people or businesses directly, the Reserve Bank ensures that lenders don't have excessive exposure to any one sector. But neither the lender's management nor the RBI bothered to check the final destination of NBFC loans, which became an albatross on the economy. The most unpalatable feature of the working paper for the Narendra Modi government is its authors' labelling the current slump as 'India's Great Slowdown' and comparing it with the infamous incident in India's economic history, the 1991 balance of payments crisis. One needn't tell Prime Minister Narendra Modi about the importance of simple words, if they catch people's imagination. Let's hope Mr Modi takes some immediate remedial measures swiftly to prevent the Great Slowdown from turning into another Watergate for him. ... DailyhuntDisclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Deccan Chroniclehttps://www.vox.com/users/raajdenenews

https://www.magcloud.com/user/guenshesehs