It has pointed out that RBI's efforts to shore up the confidence of bankers in the context of the burgeoning non-performimg assets (NPA) have been "peripheral" as the apex bank has not addressed the central issue that bulk of the NPAs is a creation of big corporates.

On provisioning norms for NPAs, the RBI stipulation in the last credit policy that Government-guaranteed loans would also have to be provided for would weaken the banks further, AIRBEA has mentioned in its letter.

Since the responsibility of repayment of such loans vests with the Government, the cost of provisioning against Government-guaranteed loans should be borne by the guarantors themselves.

AIRBEA has suggested that RBI shoulddebit the respective government account held with the RBI to replenish the cost of provisioning by the banks on account of Government-guaranteed loans becoming NPAs.

Taking a cue from Rahul Bajaj's recent statement that RBI should make public the list of bank defaulters, AIRBEA has stated that RBI should be more forthcoming and transparent on the issue of NPAs and the big defaulters responsible for weakening the banking system.