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According to government estimates, loans written off by PSBs crossed ₹7.34 trillion in the last five years till FY22, with a mere ₹1 trillion recovery during this period. Including scheduled, private and foreign banks, the write-off crossed ₹10 trillion
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RBI's action comes days after reports of a pregnant woman being crushed to death trying to stop a loan recovery agent, working on behalf of MMFSL, from seizing her father's tractor over loan dues.