We are very much concerned that the sanctity of debt contracts has been continuously eroded in India, especially by large borrowers. The system protected large borrowers and their right to stay in control, rendering bankers helpless vis-a-vis large and influential promoters. As explained earlier, we are separately dealing with this issue through the treatment towards wilful defaulters and non-cooperative borrowers. 28.
Another general issue is despite the multiplicity of objectives there is only one instrument with the central banks, viz., a variant of the short term interest rate.