Q.3 What are the reasons for the high prevalence of scams in the banking industry in India? What are the implications of such scams for the economy? Suggest the way forward. (10 Marks)

Mentor’s comment- https://www.thehindu.com/opinion/op-ed/the-scam-faultline-is-damaging-indian-banking/article65628245.ece In the intro, mention that the RBI’s Financial Stability Report released in December 2021 projects the rise of gross NPA to 8.1% in Sept, 2022. In the body, mention the reasons for the scams such as poor lending practices and inside work, involvement of junior and mid-level management, insufficient due diligence etc. … Continue reading Q.3 What are the reasons for the high prevalence of scams in the banking industry in India? What are the implications of such scams for the economy? Suggest the way forward. (10 Marks)