Finance Minister Sitharaman Defends PSBs Against Rahul Gandhi's Claims

New Delhi, Dec 11 (NationPress) Union Finance Minister Nirmala Sitharaman on Wednesday presented a robust defense against the claims made by Leader of Opposition (LoP) Rahul Gandhi regarding the performance of India’s banking sector, focusing particularly on Public Sector Banks (PSBs). She emphasized that during the tenure of the United Progressive Alliance (UPA), PSBs were misused as ‘ATMs’ for their 'cronies and shady businessmen'.

In a series of detailed tweets, FM Sitharaman highlighted that Rahul Gandhi’s tendency to make unfounded allegations is evident once again.

“India’s banking sector, particularly Public Sector Banks (PSBs), has experienced a significant transformation under Prime Minister Narendra Modi. Did the individuals who consulted the LoP inform him that the high concentration of corporate credit and reckless lending during the UPA years led to a serious decline in the health of PSBs?” questioned FM Sitharaman.

“It was during the UPA regime that bank employees faced pressure and were compelled to issue loans to cronies through ‘phone banking’ by the then Congress-led UPA government officials,” the Finance Minister stated on X.

She also elaborated on the financial backing provided to PSBs, noting that the government has recapitalized them with Rs 3.26 lakh crore over the last decade.

This investment not only aids the banks but also benefits the public, as dividends from PSBs provide income for investors.

“The public also holds shares in the PSBs, and dividends serve as a source of income for these investors, not just for the GoI. Didn’t the individuals who consulted the LoP remind him that during the UPA rule, these PSBs distributed dividends amounting to Rs 56,534 crore?” challenged FM Sitharaman.

In his post on X, Rahul Gandhi claimed that PSBs were intended to grant every Indian access to credit.

“The Modi administration has transformed these vital resources for the masses into financial backers for only the affluent and powerful corporations,” he remarked, asserting that PSBs are being pressured to prioritize profit over public service, thereby failing to adequately serve the populace.

FM Sitharaman countered Rahul Gandhi’s claims, asserting that citizen-focused governance and inclusive development are the foundational principles of the PM Modi government.

“Didn’t the individuals who consulted the LoP remind him that 54 crore Jan Dhan accounts and over 52 crore collateral-free loans under various flagship financial inclusion initiatives (PM MUDRA, Stand-Up India, PM-SVANidhi, PM Vishwakarma) have been granted?” she questioned.

FM Sitharaman also referred to the PM MUDRA scheme, noting that 68 percent of beneficiaries are women, and under the PM-SVANidhi scheme, 44 percent of beneficiaries are women.

“Didn’t the individuals who consulted the LoP remind him that loans up to Rs 10 lakh have increased by 238 percent in the past decade, with their share in total loans rising from 19 percent to 23 percent?” asked the finance minister.

Regarding recruitment efforts in the banking sector, she stated that since 2014, PSBs have hired nearly 3.94 lakh employees, and as of October 2024, 96.61 percent of officers and 96.67 percent of subordinate staff are in place.

She further remarked that Rahul Gandhi’s misrepresentation of facts is an affront to the diligent PSB employees and the citizens who gain from a more transparent, robust banking system.

“It’s about time that the @INCIndia enhances the LoP’s understanding of governance,” concluded FM Sitharaman.