RBI should design a stringent norms to banks regarding disbursment of loan either to Corporates or individual. Same should be case with Credit Card also. A bank while granting loan should ensure that the person/corporates taking the loan has got strong financial capability to repay the debt. It is also quite possible that at the time of granting loan a person may have sound financial position, but later may not be in a position to service the debt. In such case Bank should check his track record of repayments made and should get in touch with that person/corporates and restructure his loan in such a way that the person can service the debt. Sending recovering agents and demand repayment of loans from defaulters will serve nothing but may have negative impact. The banks should understand why a person/corporate is not able to pay the loan amount in time and come out with a solution that suits both banks and the borrower.
