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Wilful defaulters should be sent to jail: Sinha

Finance Minister Yashwant Sinha on Friday asked the chief executives of public sector banks to send 'big' wilful defaulters to jail if they failed to pay up their debts and suggested fixing strict accountability to improve the performance of banks.

After a three-hour meeting between Sinha and bank CEO's, special secretary banking, Devi Dayal, told reporters that the finance minister observed that if the small borrowers can be sent to jail why should not the big borrowers be given the same punishment.

On being told that the laws have never permitted stringent punishment for wilful defaulters like confiscating their property or other harsh measures, Dayal said these borrowers are usually tried by the Debt Recovery Tribunals and the amendments in the act provide for harsh punishment.

On the Non-Performance Assets of the public sector banks, Dayal said as against an increase of Rs 60 billion during 1999-2000 compared to the previous fiscal, it increased by only Rs 17 billion last fiscal as compared to 1999-2000.

While the gross NPAs have come down to 13 per cent last fiscal, the Net NPAs declined from 8 to 7 per cent, Devi Dayal said.

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