'Misrepresentation of facts is an insult...': FM Sitharaman comes down heavily on Rahul Gandhi's PSB claim

Union Finance Minister Nirmala Sitharaman on Wednesday slammed Leader of Opposition Rahul Gandhi for accusing the NDA government of misusing public sector banks as an unlimited source of funds for their "fraudulent friends".

Sitharaman in a series of posts on social media X said that Gandhi's claims are baseless as the public sector banks (PSBs) have seen a remarkable turnaround under the current government. She expressed that Gandhi's distortion of facts is offensive to the dedicated PSB personnel and the individuals who rely on a more efficient and secure banking system.

"Rahul Gandhi’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. Didn’t the people who met with the LoP tell him that in the last two years alone, 16 credit outreach programs have been conducted across India, disbursing over Rs 24,500 crore in loans to approximately 9 lakh small clients? These loans were provided under schemes such as PM MUDRA, Kisan Credit Card, Stand-up India, PM SVANidhi, MSME loans, and Agricultural loans. Majority of these loans are collateral free, small-ticket loans aimed at supporting common people," Sitharaman noted on her post.

In the same thread of posts, she pointed out that the 12th Bipartite Settlement (BPS) had been signed well in advance of the typical timeline for such agreements. As a result, the incomes of bank employees were significantly increased.

The 12th BPS includes many employee-friendly measures like:

• Increase of 17% in salary and allowance (Rs. 12,449 Crore) and load of 3% (within overall increase of 17%) amounting Rs 1,795 crore (attracting terminal benefits).
• New pay scale & cost sheets for all cadres.
• Change in the base year for calculating DA/DR rates for the in-service staff as well as the pensioners/family pensioners from 1960 to 2016
• Revised halting rates/ lodging expenses, deputation allowance & rates for reimbursement of expenses on road travel.
• Revised medical insurance policy for retirees with Base policy concept. 
• Staff welfare fund (SWF) was given a boost by increasing the maximum ceiling of annual spending. The ceiling, last revised in 2012, was thoroughly revised. Post revision, the combined maximum annual expenditure ceiling of SWF for all the 12 PSBs has increased from 540 crore to 845 crore. This increase will benefit 15 lakh staff, including retired employees. 

She added that PSBs were misused under the UPA regime as they were forced to give loans to cronies.

"Rahul Gandhi’s penchant for making baseless statements is on full display, yet again. India’s banking sector, especially Public Sector Banks (PSBs), has seen a remarkable turnaround under @PMOIndia @narendramodi. Didn’t the people who met with the LoP tell him that high concentration of corporate credit and indiscriminate lending during UPA tenure had resulted in significant deterioration in the health of PSBs? Under @INCIndia, PSBs were treated as ‘ATMs’ for their cronies and shady businessmen. 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 Govt functionaries," Sitharaman wrote.

She went on to add that the current government launched the Asset Quality Review in 2015, revealing the 'phone banking' practices of the previous UPA Government. The Modi Government introduced the '4Rs' strategy and other banking sector reforms. 

Earlier on Wednesday, Gandhi met a delegation from the All India Banking Officers Confederation and posted on X that "The Modi government has turned these lifelines of the masses into private financiers for only the rich and powerful corporations." 

After meeting the members, he expressed distress at the state of public sector banks and its impact on common people.

"PSBs are being forced to prioritise profit over people and are thus unable to serve the public effectively. With staff shortages and a toxic work environment, they are expected to reach unachievable targets without a level playing field," Gandhi said.

"The Modi government must stop using PSBs as an unlimited source of funds for their fraudulent friends. There's also more to a public sector bank than a dividend cheque to the government at the end of the year," the leader of opposition said.