Bhagwat Krishanrao Karad: Bhagwat Karad said, I want to tell you that every bank has a bank board. In case of simple interest or compound interest, the bank officials and their boards decide. The government does not interfere in this.
FM Nirmala Sitharaman on Bank Loan: Union Finance Minister Nirmala Sitharaman on Monday directed in the Lok Sabha to treat all defaulters fairly. He said that whether it is government banks or private banks, all have been instructed through RBI to deal with poor farmers in a humane and sensitive manner on the matter of payment of missed loan installments. During Question Hour, when Minister of State for Finance Bhagwat Karad was replying to a Shiv Sena member’s question on the tough strategy adopted by banks while dealing with bad loan defaulters, Sitharaman intervened to say that this is a sensitive matter, which has often been brought to the notice of the government.
Instructed to deal with humanely
He said, ‘A sensitive issue has been raised here. Such cases of hand twisting tactics adopted by public or private banks while dealing with poor farmers have been brought to our notice. We have often instructed banks through RBI to deal with such people in a humane manner. In an attempt to recover loan installments, there have been cases of physical violence by the representatives of the banks.
Bank officials and their boards decide
Earlier, Bhagwat Karad said, I want to tell you that every bank has a bank board. In case of simple interest or compound interest, the bank officials and their boards decide. The government does not interfere in this. He also highlighted the government’s PM Swanidhi Yojana in view of the discussion in Parliament and said that through such schemes poor people can get loans without falling into debt trap.
He said that the government is trying to save people from moneylenders through schemes like PM Swanidhi Yojana. Through this, poor people can get loans without getting trapped in debt trap.
