Rahul Gandhi Criticises Modi Government's Banking System; Nirmala Sitharaman Responds

Finance Minister Nirmala Sitharaman criticised Rahul Gandhi's remarks about state-owned banks, calling them an affront to diligent employees and citizens who benefit from a robust banking system. She stated that during the UPA era, indiscriminate lending and high corporate credit concentration led to public sector banks' decline. These comments were made in a series of posts on X.

Representative image

Earlier, Rahul Gandhi accused the government of exploiting public sector banks for the benefit of wealthy corporations. He claimed these banks, essential for the masses, have become financiers for the rich under the Modi administration. Gandhi shared these views after meeting with the All India Banking Officers Confederation.

Banking Sector Reforms and Achievements

Sitharaman highlighted the significant improvements in public sector banks under Prime Minister Narendra Modi's leadership. She mentioned that the Asset Quality Review initiated in 2015 exposed previous phone banking practices during the UPA regime. The government implemented reforms like the 4Rs strategy to address these issues.

The Finance Minister emphasised that PSBs received Rs 3.26 lakh crore in recapitalisation over the past decade. She also pointed out that citizen-centric governance and inclusive development are central to Modi's administration. The government has sanctioned 54 crore Jan Dhan accounts and over 52 crore collateral-free loans through various financial inclusion schemes.

Employment and Women's Empowerment

Sitharaman noted that since 2014, PSBs have recruited 3.94 lakh employees, with ongoing recruitment drives filling vacancies across central government departments. As of October 2024, officer positions are 96.61% filled, while subordinate staff positions are 96.67% filled.

The Finance Minister highlighted women's achievements in leadership roles within the banking sector, stating that women excel as MDs and CEOs. She added that the government's commitment to women-led development is evident in both policy and practice.

A recent directive from the Department of Financial Services ensures banks address women's concerns, including special leave provisions for menstrual periods, infertility treatment, adoption of a second child, and stillbirth events. It also includes transfer policies to nearby areas and prohibits mid-year transfers.

Labour Agreements and Employee Welfare

Sitharaman mentioned that the 12th Bipartite Settlement was signed ahead of schedule, enhancing bank employees' incomes. She also noted that all banks close on the second and fourth Saturdays since a 2015 RBI announcement.

The Finance Minister reiterated her criticism of Gandhi's statements, urging the Congress party to improve his understanding of governance. She stressed that during the UPA regime, bank employees faced pressure to grant loans through phone banking by Congress-led government officials.