PM Modi Accuses UPA Govt Of Destroying economy & Banking System

PRIME Minister Narendra Modi has blamed UPA government headed by the Congress for ruining national economy and unprecedented NPAs by allowing loans to its cronies at the cost of destroying the banking system. Launching   Payment banks under the Department of  Post to provide doorstep service at Delhi, PM Modi said  that during the erstwhile UPA regime, banks were compelled to sanction huge loans without going through due diligence at the dictates of the high and mighty close to the UPA’s first family. During the last four years, all loans in excess of Rs 50 crore have been reviewed and ensured that terms are strictly complied with, Modi said. He said 12 of the biggest loan defaulters have an outstanding of Rs 1.75 lakh crore. Another 27 have Rs 1 lakh crore. “We never gave any loans to any of the 12 big defaulters,” he said

‘phone-a-loan’ scam of the previous UPA government has caused rising bad loans in the banking sector and said every rupee given at the behest of ‘namdars’ (dynasts) will be recovered.A majority of bank funds during the previous regime were reserved only for the rich who were close to a particular family.Against Rs 18 lakh crore loans given since Independence to 2008, the figure rose to an astronomical Rs 52 lakh crore in six years thereafter, he said. “Loans were given on phone calls made by ‘namdars’ (dynasts),” he said without taking anyone’s name.Banks lent crores of rupees in contravention of rules to businessmen who were referred by the ‘namdars’, he alleged. “Knowing fully well that loans will not be paid back, banks lent money on orders of a family to a few,” he said, adding that the lenders were forced to restructure the debt when the borrowers defaulted.The previous UPA government kept  hidden  the extent of NPAs. Since coming to power in 2014, the NDA government has analysed the enormity of the situation and asked banks to strictly recover dues, the  PM said.The NDA Government is committed to strengthening  the country’s  financial system, he added.“Congress had put the economy on a landmine,” he said, adding, “our government brought out the true picture of NPAs and the scam of the previous government.”

An official said India Post Payments Bank (IPPB) will be like any other bank but its operations will be on a smaller scale without involving any credit risk. It will carry out most banking operations like accepting deposits but can’t advance loans or issue credit cards. The cabinet, earlier this week, approved an 80 per cent hike in spending on IPPB to Rs 1,435 crore — arming it with additional ammo to compete in the market with existing operators like Airtel Payments Bank and Paytm Payments Bank.

IPPB services will be available at 650 branches and 3,250 access points initially IPPB services will be extended to all the 1.55 lakh post offices across the nation by December 2018. Of these, 1.30 lakh access points will be located in rural areas, taking it to vast untapped market. IPPB also has permission to link around 17-crore postal savings bank (PSB) accounts with its own set up, says an official release.

 

Leave a Reply

Your email address will not be published. Required fields are marked *