Modi authorities dealt a lethal blow to the banking sector via demonetisation: Randeep Singh Surjewala
New Delhi:
Congress chief Randeep Singh Surjewala on Wednesday accused the federal government of destroying the monetary institutes in addition to public sector banks. Issuing a press launch, Mr Surjewala touched upon a variety of points regarding the nation’s financial system, accusing the federal government of failure.
“In March 2013-14, NPAs had been Rs 2,16,739 crores (three.eight per cent of whole loans). NPAs elevated to Rs 9,35,000 crores as in September 2019 (to 9.1. per cent),” he mentioned whereas slamming the federal government.
“RBl’s July 2020 ”Monetary Stability Report” displays that Unhealthy Loans within the Banking System can attain a whopping 14.7 per cent, a 20-year excessive. How did it balloon a lot?,” the Congress chief requested.
Hitting out on the authorities additional, he mentioned, “With the banks not allowed to get better loans from defaulters, all additional lending got here to a halt. Financial institution credit score development was 14 per cent when the Modi authorities assumed energy within the 12 months 2014. Financial institution Credit score Development is now right down to four% and can turn out to be zero quickly, as per RBl’s personal report. This implies there isn’t a cash obtainable for companies that want them as a result of banks are hesitant to lend.”
“That’s exactly why of the Rs three,00,000 crores assured loans to MSME’s introduced with a lot fanfare, solely Rs 1,23,000 crores had been sanctioned and a good decrease quantity of Rs.68,311crores has been disbursed. The story repeats all over the place,” he mentioned.
Talking concerning the revelations by former RBI Governor Urjit Patel, Mr Surjewala added, “The damning proof of the Modi authorities’s dishonest intentions is now coming to gentle. Recent revelations by former RBI Governor Urjit Patel have proven how the Authorities diluted the lnsolvency and Chapter Code, hurting the Central Financial institution’s efforts to get better dangerous loans. This benevolence in the direction of crony capitalists has been unfolding since Dr Raghuram Rajan”s first warning to the PM that fell on deaf ears.”
“Modi authorities dealt a lethal blow to the banking sector via demonetisation and its affect continues to hang-out the financial system even after three-plus years of that fateful night of November eight, 2016. It achieved nothing. Foreign money in circulation has now reached an all-time excessive of 14 per cent of GDP,” he added.
Referring to the Rs 20-lakh-crore bundle introduced by the federal government, the Congress chief identified, “The Modi authorities”s response throughout COVID was the hogwash of Rs 20 Lakh Crore Bundle which ended up as an empty formality. Non-food credit score development is nearly zero and Financial institution credit score Development is decreasing from four% to the baseline ”O”. Banks are simply redepositing the cash again with the RBI.”
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