The Supreme Court on Thursday refused to hear a petition filed by BJP MP Subramanian Swamy regarding NPAs in the banking sector. Refusing to hear the petition, the Supreme Court said that it is a matter of policy and comes within the domain of executive and Reserve Bank of India. The petition, filed by Swamy, had sought framing of guidelines to examine the threat of rising non-performing assets.
However, a bench of Justices DY Chandrachud, Vikram Nath and BV Nagarthan allowed Swamy to take up the matter with the RBI, which may consider modifying the appropriate guidelines. The court said that how can we prepare guidelines for the ever-increasing NPAs. Guidelines have been issued by RBI from time to time. It is not possible for the court to enter the jurisdiction of the executive.
Swamy, himself appearing in the court, said that his petition pertains to the issue of increasing NPAs in the banking sector and this court should constitute a committee which will suggest necessary guidelines to check the increase in NPAs. The bench said that both the government and RBI have issued guidelines in this regard from time to time. Swamy, on the other hand, said that the RBI maintains “extraordinary secrecy” with regard to NPAs. Swamy said that people have to wander from door to door when the bank is closed.