Approach matter with sensitivity: FM Nirmala Sitharaman on bank loan repayment

The finance minister said that the government has instructed all banks, both public and private, to not take harsh steps when it comes to processing of loan repayments

Union finance minister Nirmala Sitharaman on Monday told Parliament that the government has instructed all banks, both public and private, to not take harsh steps when it comes to processing of loan repayments, and they should approach the matter with humanity and sensitivity in mind.

Sitharaman was responding to a question from Shiv Sena MP Dhairyasheel Sambhajirao Mane. (Twitter | Nirmala Sitharaman Office)

Responding to a question from Shiv Sena MP Dhairyasheel Sambhajirao Mane, the finance minister said, “The honourable member has raised a sensitive issue, I know I have heard complaints about how mercilessly paying back has been followed up by some banks. Whether they are public sector banks or private sector banks.”

Mane had asked about steps the government is taking to address this issue and regulating the banks approach over loan repayment matters.

Dr Bhagwat Krishanrao Karad, minister of state (MoS) finance also replied to the query raised by the Shiv Sena MP.

“I want to tell you that every bank has a bank board. Regarding simple interest or compound interest, bank officials and their boards take the decisions. The government does not interfere in that”, he said in his response to the question.

He also shed light on the PM Swanidhi Yojana scheme of the government in wake of the discussion in Parliament saying through such schemes poor people can get loans without getting into a debt trap.

He added that the government is trying to save people from pawnbrokers, through schemes like PM SVANidhi Yojana where poor people can get loans without being in a debt trap.

The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched by the ministry of housing and urban affairs on June 1, 2020 for providing affordable working capital loan to street vendors