Banks have two wings .One is marketing wing and another is operation.marketing people promise moon to the customer and forward their applications.the operating wing will make an detailed assesement and find that the customer is not eligible for the promised amount of loan. The friction between the potential borrower and banker starts at that point.This continues on and on and the borrower creates a negative impression about everything the bank does.A default in repayment of one or two instalments is not taken seriosely by the bank initially.when the calls are not responded,defaults mount the banker treats it seriousely.The basic reason for rising defaults are financial mismanagement by the borrower,underfinancing by the banking institutions etc.Hence both the banker and the borrower are equally responsible for the defaults and the resultant actions.A prudential finance palanning by the borrower and understanding the need of the customer while financing by the bank,will generate a healthy atmosphere and all this special acts by the RBI as contemplated now will not be required.
