Indian Bank Write off

Past few days a news has been floating regarding Indian banks write off the loan worth 68600 crore of top 50 willful defaulters few parties are misleading people about this news. Before getting into discussion we first need to understand three banking terms . First is NPA (Non performing Asset)  simply if we need to define this term we can say “ A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days or more”. The second term is “Willful defaulter”  A willful defaulter’s definition is lengthy and conditional but in general “A willful defaulter points to someone who have the means to pay but won’t”(e.g. Vijay Malya, Mehul chouksi etc. ) .     Now the most important term that most of us don’t know is  “Writing off the loans” The term “write-off” is really just an accounting term. What it means is that the lender(banks) doesn't count the money you owe them as an asset of the company anymore. Its financial statements will reflect that change. They're required to write off certain bad loans so as not to mislead investors. .You still owe the money, and all kinds of legal actions will be taken against you.
In the current scenario this write off term is being used by many opposition leaders in order to mislead the public ,They are intentionally defining it as the government has paid the loans  on behalf of the defaulters to spread fake propaganda against government .
It all started when a RTI activist Saket Gokhale filed an RTI on march 19 , He received a list of 50 willful defaulters till 30th September 2019  on 24th april 2020.
NPAs & Willful defaulters are  affecting the economic growth of India negatively. But it is not something that started from 2014 , The government is trying its best to resolve this issue. NDA government earlier introduced The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002  & last year it passed bill “The Insolvency and Bankruptcy Code (Amendment) Bill, 2019” .

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