Full Text Of Nirmala Sitharaman's Strong Rebuttal To Rahul Gandhi's Baseless Remarks On Indian Banking Sector

Finance Minister Nirmala Sitharaman responded to Leader of the Opposition Rahul Gandhi's baseless statements, defending the government's banking reforms. The statement highlights the turnaround of Public Sector Banks (PSBs) under the Modi government and criticises past practices during the UPA regime.

Here's the full text Sitharaman posted on social media platform X, formerly known as Twitter:

Leader of the Opposition Rahul Gandhi’s penchant for making baseless statements is on full display, yet again. India’s banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under Prime Minister Narendra Modi.

Didn’t the people who met with the LoP tell him that high concentration of corporate credit and indiscriminate lending during UPA tenure had resulted in significant deterioration in the health of PSBs?  Under Indian National Congress, PSBs were treated as ‘ATMs’ for their cronies and shady businessmen.

It was actually during the UPA regime when bank employees were harassed and forced to give loans to cronies through “phone banking” by the then Congress-led UPA Govt functionaries.

Didn’t the people who met with the LoP tell him that Asset Quality Review was launched by our Government in 2015, unearthing the ‘phone banking’ practices of UPA Govt?

Modi Government initiated the ‘4Rs’ strategy and other reforms in the banking sector.

Didn’t the people who met with the LoP tell him that in the last 10 years, the PSBs were supported through recapitalisation of Rs. 3.26 lakh crore?

The Public also has a shareholding in the PSBs and dividends are the source of income for such investors also. Not just for the Government of India.

Didn’t the people who met with the LoP tell him that during the UPA rule these PSBs paid dividends of Rs 56534 crore?

Citizen centric governance and inclusive development is the core principle of Modi Government.

Didn’t the people who met with the LoP tell him that 54 crore Jan Dhan accounts and more than 52 crore collateral-free loans under various flagship financial inclusion schemes (PM MUDRA, Stand-Up India, PM-SVANidhi, PM Vishwakarma) have been sanctioned?

Didn’t the people who met with the LoP tell him that under PM MUDRA scheme, 68% of beneficiaries are women and under PM-SVANidhi scheme, 44% of beneficiaries are women.

This is a testament to Modi Government’s philosophy of ‘Antyodyay’.

Didn’t the people who met with the LoP tell him that loans up to Rs. 10 lakh have increased by 238% in the last 10 years, and their share in total loans has also increased from 19% to 23%?

Similarly, didn’t the people who met with the LoP tell him that loans up to Rs. 50 lakh have also increased by 300%, increasing their share from 28% to 42% in the last 10 years?

Didn’t the people who met with the LoP tell him that recruitment drives and Rozgar Mela initiatives have filled lakhs of vacancies across all central government departments, including banks and PSBs?

Didn’t the people who met with the LoP tell him that since 2014, PSBs have recruited 3.94 lakh employees?

As on October 2024, 96.61% of Officers are in position and 96.67% of Subordinate/ Award Staff are in position, showing meagre vacancies which are also being filled.

Again, didn’t the people who met with the LoP tell him that 12th Bipartite Settlement (BPS) was signed, far ahead of the usual time taken for the agreement, thereby enhancing the incomes of the bank employees?

The 12th BPS includes many employee-friendly measures like:

Increase of 17% in salary and allowance (Rs. 12,449 Crore) and load of 3% (within overall increase of 17%) amounting Rs 1,795 crore (attracting terminal benefits).

New pay scale & cost sheets for all cadres.

Change in the base year for calculating DA/DR rates for the in-service staff as well as the pensioners/family pensioners from 1960 to 2016

Revised halting rates/ lodging expenses, deputation allowance & rates for reimbursement of expenses on road travel.

Revised medical insurance policy for retirees with Base policy concept.

Staff welfare fund (SWF) was given a boost by increasing the maximum ceiling of annual spending. The ceiling, last revised in 2012, was thoroughly revised. Post revision, the combined maximum annual expenditure ceiling of SWF for all the 12 PSBs has increased from 540 crore to 845 crore. This increase will benefit 15 lakh staff, including retired employees.

Didn’t the people who met with the LoP tell him that it was under Prime Minister Narendra Modi, in 2015 that the RBI announced that all banks would be closed on the second & fourth Saturdays of the month.

Women are excelling as MDs, CEOs, and leaders in the sector. The Modi government’s commitment to women-led development is evident not just in policy but in practice.

In the recent order issued by Department of Financial Services  to all the banks on 26th November 2024 clearly shows that the government is making sure that the banks look after women employees, their well-being and concerns. It entails Special leave provisions for Women Employees, including those related to leave during the menstrual period, infertility treatment, adoption of a second child and the events of stillbirth. Also, it included transfer of women employees to nearby areas, no mid-year transfers etc.

Rahul Gandhi’s misrepresentation of facts is an insult to the hardworking PSB employees and to the citizens who benefit from a cleaner, stronger banking system. It’s high time the Indian National Congress up-skills the LOP’s understanding of governance.

Didn’t the people who met with the LoP tell him that in the last two years alone, 16 credit outreach programs have been conducted across India, disbursing over Rs 24,500 crore in loans to approximately 9 lakh small clients?

These loans were provided under schemes such as PM MUDRA, Kisan Credit Card, Stand-up India, PM SVANidhi, MSME loans, and Agricultural loans. Majority of these loans are collateral free, small-ticket loans aimed at supporting common people.