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Priyanka Chaturvedi gives zero-hour notice in RS over writing off of non-performing loans of defaulters by PSBs

News Agencies | Updated on: 27 July 2022, 10:35 IST
Shiv Sena MP Priyanka Chaturvedi.

Shiv Sena MP Priyanka Chaturvedi on Wednesday gave a zero-hour notice in Rajya Sabha over "writing off of the non-performing loans of Defaulters by the Public Sector Banks (PSBs)."

"It is a matter of grave concern that while the country is recovering from the post-pandemic economic stresses and international disturbances, the issue of rising in write-offs of the non-performing loans, especially by the Public Sector Banks, is concerning and requires an urgent intervention," she said in her notice to Rajya Sabha Secretary-General.

She further said that the Reserve Bank of India (BHI) has stated in reply to an RTI that in the last ten years Rs 11,68,095 worth of loans have been written off by the banks. Of this, at least Rs 10.72 lakh crore have been written off since 2014-15.

"While writing off loans may be claimed as routine practice by banks, the issue of nondisclosure of names of the defaulters makes it aggravating.

The health of India's Public Sector Banks (PSBs) is fraught with the problem of stressed assets," said the Shiv Sena MP.

"In such a situation, the fact that 75 per cent of such write-offs are by PSBs is alarming. Due to the lack of transparency in the writing-off process, often the loans of Big Defaulters, instead of the small defaulters, end up getting written off without first extinguishing all possible means of recovery," she said.

Chaturvedi further said that the banks are considered to be the custodians of public money. They are required to take all necessary measures to protect the value of the assets and adopt all possible measures of recovery from big defaulters before writing off the loan.

"Therefore, I would like to urge to the government, through this house, to look into the issue of transparency of writing off the process of PSBs to ensure the safety of the public money and to also ensure that faith in the public sector banks is maintained," she added.

Earlier on Tuesday, 19 Opposition MPs including TMC leaders Sushmita Dev, Santanu Sen, and Dola Sen were suspended from Rajya Sabha for the remaining part of the week for 'misconduct'.

They were suspended for storming well of the House and sloganeering against the government over inflation. Following the incident, Rajya Sabha adjourned for the day to meet at 11 am on Wednesday.

The Upper House has been facing adjournment on various issues due to the Opposition ruckus since the Parliament's Monsoon Session started.

The Monsoon Session of Parliament commenced on July 18 and will continue till August 12. There will be 18 sittings during the Session.


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First published: 27 July 2022, 10:35 IST