It is indeed a good decision which will curtail Non-performing assets (NPA) of public sector banks. Currently almost all CMDs and Executive Directors are appointed at the fag end of their service which means they merely enjoy their retirement life even before retirement and make money by approving huge loans which are not paid back, hence NPA is piled up. See at Private Sector banks, the system is very efficient and the NPA is minimum and the loan given to Corporates are strictly monitored and recovered. For Public sector banks. the example is loan to Kingfisher Air.
Appears to be better way, but when at working level, govt. will start retiring early non performers, suspected corrupts and unfits. We need young performers not rotten people to deliver.
