New Delhi, Mar 26 (UNI) Union Finance Minister Nirmala Sitharaman on Wednesday said in the Rajya Sabha that banks have overcome the challenges posed by the COVID-19 pandemic and are now heading in a new direction.
The Finance Minister opined that the banking reforms are the need of the hour.
Replying to the nearly three-hour-long discussion on the Banking Laws Amendment Bill 2024 in the house, Sitharaman said that there is no such thing as loan waiver.
She said steps are being taken to recover funds from borrowers, while the government’s anti-corruption measures in banks have yielded positive outcomes. Public sector banks have become profitable, management has improved, creditors have regained stability, and loan repayments are on track.
The Finance Minister stated that there is a globally accepted process for reporting bad loans. She also mentioned that the Non-Performing Assets (NPA) of commercial and cooperative banks have reduced to 2.5 percent, while profits continue to rise.
Autonomy is essential for strengthening banks, and the government is actively working toward this goal, she said, adding that , Financial support has been provided to three to five banks.
Sitharaman stated that structural reforms are being implemented in the banking system, expanding its reach.
Financial inclusion has gained momentum, particularly in rural areas, with schemes like Mudra Yojana and PM Swanidhi playing a significant role.
Sitharaman stated that action is being taken against borrowers who deliberately fail to repay their loans, including asset seizures and both internal and external measures. She also mentioned that penalties are imposed for non-compliance with banking regulations, but there is no penalty for not maintaining a minimum balance in Jan Dhan accounts.
The Finance Minister said that the banks are expanding their outreach, with branches established in urban, semi-urban, and rural areas, ensuring better accessibility for people. Regarding cyber security, she mentioned that measures have been implemented in collaboration with the Home Ministry, involving all relevant stakeholders.
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