Finance Minister Nirmala Sitharaman delivered a sharp rebuttal to Congress leader Rahul Gandhi’s criticism of public sector banks (PSBs), accusing him of making “baseless statements” about their functioning under the Modi government. The exchange comes amidst ongoing debates about the government’s policies on financial institutions and public welfare.
Rahul Gandhi’s Allegations
In a social media post, Rahul Gandhi alleged that PSBs have been forced to prioritize profits over public welfare, thereby failing to serve the common people. He claimed that the Modi government has transformed these banks into “private financiers for the rich and powerful corporations.”
Gandhi further highlighted staff shortages, a toxic work culture, and alleged gender disparities within PSBs. He stated, “Women employees are not given equal opportunity or advancement and forced to bear the brunt of dissatisfied public.” Gandhi also accused the government of misusing PSBs as a “source of funds for fraudulent friends,” while ignoring their foundational role of serving the masses.
Sitharaman’s Counterattack
In a series of posts, Nirmala Sitharaman countered Gandhi’s claims, emphasizing the reforms undertaken by the Modi government to strengthen the banking sector.
- Turnaround of PSBs: Sitharaman stated that under Modi’s leadership, PSBs witnessed a “remarkable turnaround” after years of mismanagement during the Congress-led UPA regime.
- Phone Banking Practices: She accused the UPA government of engaging in “phone banking,” where bank employees were allegedly coerced to grant loans to politically connected cronies. She asserted that these practices led to a deterioration in the health of PSBs, which required corrective measures post-2015.
- 4Rs Strategy: Sitharaman highlighted the government’s introduction of the ‘4Rs’ strategy—Recognition, Resolution, Recapitalisation, and Reforms—to address stressed assets and improve banking efficiency. She noted that recapitalisation to the tune of ₹3.26 lakh crore has been provided to PSBs over the past decade.
- Financial Inclusion Milestones: The Finance Minister cited key achievements, such as the opening of 54 crore Jan Dhan accounts and the sanctioning of over 52 crore collateral-free loans under flagship schemes like PM MUDRA, Stand-Up India, and PM-SVANidhi.
Highlighting Dividend Contributions
Sitharaman also underscored the public’s stake in PSBs, noting that dividends paid by these banks contribute to individual investors’ incomes. She contrasted the ₹56,534 crore dividends paid during the UPA era with the Modi government’s policies of citizen-centric governance and inclusive development.
A Continuing Debate
The exchange highlights the differing perspectives of the BJP and Congress on banking policies. While Gandhi’s critique centers on alleged neglect of public welfare, Sitharaman’s defense points to reforms and achievements aimed at ensuring financial inclusion and systemic stability.
As India’s financial sector remains a focal point of political discourse, such debates underscore the challenges of balancing profit motives with the welfare role of public institutions.
This news report is curated with insights from multiple reliable news sources.
