Loans to 2G mobile spectrum licence holders given as per norms: Reserve Bank of India

The Reserve Bank of India (RBI) does not see any major problem for banks in recovering loans lent to second generation mobile spectrum licence holders, due to the scam, a top central bank official said here today.

All loans had been given following normal procedures, RBI deputy governor KC Chakraborty told reporters at Vendoni village near here.

He said the RBI had verified and no improper sanction of loan to companies, which obtained 2G mobile spectrum licence, had come to its notice.

"I don't see any major problem for the banks who have lent money for 2G mobile spectrum licence holders. There is no chance of any loan (to 2G mobile spectrum licence holders) going NPA (non- performing assets).We will be able to recover the loans."

To a question on licence to new banks, he said "It is a big process and it will take time."

He said draft guidelines are being discussed.

"After the guidelines were ready the applicants should have to apply to the committee, to be set up for the purpose, and they should decide," he said.

On spiralling food prices, he said prices of essential items would come down only with more production and hard work.

"The government says there is single digit inflation."