Union Finance Minister Nirmala Sitharaman claimed that the UPA government’s ‘phone banking’ practice between 2004 and 2014 caused huge NPAs and bank losses. Speaking at a credit outreach event in Andhra Pradesh, she alleged that leaders directed banks via phone calls to give loans to ineligible individuals, resulting in unpaid debts and financial troubles for banks. Sitharaman credited Prime Minister Narendra Modi for changing this system after 2014, emphasizing a new approach where banks directly serve the people by offering collateral-free loans.
Sitharaman highlighted the government’s efforts to support street vendors by facilitating low-interest loans without collateral through a program that provides necessary guarantees for their businesses. She mentioned that this initiative aims to reduce reliance on moneylenders and middlemen, especially for small traders who face high interest rates. The Finance Minister emphasized the NDA government’s focus on granting loans based on eligibility, leading to a positive shift in public perception towards banking institutions.
At the credit outreach event in Narasaraopet, banks disbursed significant loans to over 1 lakh beneficiaries under Central Government schemes, totaling Rs 3,216 crore. Loans were distributed across various sectors, including agriculture, MSME units, housing, education, vehicles, and solar power projects. Chief Minister Chandrababu Naidu praised Sitharaman for her efforts in addressing NPAs and promoting digital banking, acknowledging the Centre’s support in the state’s recovery from past challenges and financial assistance for key projects like Amaravati and Polavaram.
