Nirmala Sitharaman hits back at Rahul Gandhi, says citizens benefited from stronger banking system in Modi govt

Leader of Opposition had accused government of using public sector banks, the "lifelines of the masses", as an unlimited source of funds for their "fraudulent friends".

New Delhi: Finance Minister Nirmala Sitharaman on Wednesday termed the allegation of Leader of Opposition (LoP) Rahul Gandhi against state-owned banks as an insult to the hardworking employees and to the citizens who benefit from a cleaner, stronger banking system.

Gandhi has a penchant for making baseless statements and the fact is that high concentration of corporate credit and indiscriminate lending during UPA tenure had resulted in significant deterioration in the health of public sector banks, she said in a series of posts on X.

Banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under the leadership of Prime Minister Narendra Modi, she said.

Earlier in the day, Gandhi after meeting a delegation from the All India Banking Officers Confederation accused the government of using public sector banks, the "lifelines of the masses", as an unlimited source of funds for their "fraudulent friends".

"The Modi government has turned these lifelines of the masses into private financiers for only the rich and powerful corporations," he said in a post on X.

Attacking Gandhi, the Finance Minister said, "@RahulGandhi'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 @INCIndia up-skills the LOP's understanding of governance."

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 government functionaries, she said in her post.

"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 took charge to initiate the reforms in the banking sector such as '4Rs' strategy," she said.

As part of the strategy, she said, the PSBs were supported through recapitalisation of Rs 3.26 lakh crore in the last 10 years.

"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?," she wondered.

With regard to employment generation, she said, the government has undertaken recruitment drives and Rozgar Mela initiatives to fill lakhs of vacancies across all central government departments, including banks and PSBs. Since 2014, PSBs have recruited 3.94 lakh employees.

As on October 2024, 96.61 per cent of officers are in position and 96.67 per cent 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?," she quipped.

The RBI announced that all banks would be closed on the second & fourth Saturdays of the month in 2015.

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

The recent order issued by the Department of Financial Services to all the banks on November 26, 2024 clearly shows that the government is making sure that the banks look after women employees, their well-being and concerns, she said.

"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," she said.