- GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development
- GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
- GS-2: Statutory, regulatory and various quasi-judicial bodies.
Context: During the last five years — from 2017-18 to 2021-22 — scheduled commercial banks (137) wrote off non-performing assets (NPAs) worth ₹9,91,640 lakh crore out of which 12 public sector banks accounted for ₹7,27,330 crore.
- Minister of State for Finance Bhagwat Karad, said this in a written reply to a Rajya Sabha unstarred question raised by Mallikarjun Kharge, in August.
- However, according to RBI data, banks have written off ₹10,09,510 crore over the last five years. Public Sector Banks (PSBs) accounted for ₹7,34,738 crore of these write-offs.
Main Practice Question: Why do banks write-off loans? What are its implications on the economy?
Note: Write answer his question in the comment section.