What do you think of Raghuram Rajan's observations on Non-Performing Assets?The Loksabha Committee on Estimates asked the former Governor of the Reserve Bank of India, Mr. Raghuram Rajan, to brief them on the Non-Performing Assets (NPA) of the banks. Mr.Raghuram Rajan blamed the over-enthusiasm of the banks and the policy paralysis on the part of the governments for the increasing NPAs. He further cautioned that the MUDRA loans and Kisan Credit Card under the Prime Minister Mudra Yojana or PMMY may be the potential factors that may add to the present crisis. Loans are given to the unorganized micro and small businesses, called MUDRA loans, and credit extended through the Kisan credit card. According to Mr.Rajan, these loans and also the Credit Guarantee Scheme for Micro, Small & Medium Enterprises (MSME), run by the Small Industries Development Bank of India, are to be examined and closely watched. He also urged all the political parties not to waive farm loans which are detrimental to the credit culture and may result in reduced credit flow.