Usha Thorat: Banking in the Hinterland Keynote address by Ms Usha Thorat, Deputy Governor of the Reserve Bank of India, at the Conference on “Banking in the Hinterland”, organised by the Indian Banks Association and Rural Marketing Agencies Association of India, Mumbai, 14 February 2007.
NPLs go to the heart of banking – both its simplicity and its complexity. Because credit, like banking more generally, ultimately requires trust. High levels of NPLs can erode that trust and confidence in the banking system. In my remarks today, I would first like to reflect on this issue of trust.