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The Reserve Bank of India has pulled up banks for not sharing information on loans, derivatives and unhedged forex currency exposures of borrowers among themselves.
In its monetary policy statement, the Reserve Bank of India drew attention to the significant increase in non-performing assets and restructured loans of banks. It said that a major reason for the deterioration in the asset quality of banks is the lack of effective information sharing among them, despite specific instructions issued in September and December 2008.
It has asked banks to put in place an effective mechanism for information sharing by December. It has also said that any sanction of fresh loans/ad hoc loans/renewal of loans to new/existing borrowers with effect from January 1, 2013, should be done only after obtaining/sharing necessary information.
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