Banks need to deal with poor loan defaulters in a sensitive manner: Sitharaman


New Delhi, 24 July (Hindustan Times). Union Finance Minister Nirmala Sitharaman asked banks to handle loan payment issues with sensitivity and human feeling.

Nirmala Sitharaman said this in reply to a supplementary question during the Question Hour in the Lok Sabha. During Question Hour in the Lok Sabha on Monday, when Minister of State for Finance Bhagwat Kishanrao Karad was replying to a Shiv Sena member’s question on the strategy of banks while dealing with bad loan defaulters, Sitharaman intervened to say that it is a sensitive matter, which has often been brought to the notice of the government.

The Finance Minister said that it has come to his knowledge that some private and public sector banks are taking strict action in the matter of loan repayment. He said that instructions have been issued to banks through the Reserve Bank of India (RBI) to deal with such cases on humanitarian grounds. He said that all the banks, whether public or private, have been directed to deal with the poor farmers in a humane and sensitive manner on the issue of payment of missed loan instalments.


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