Relentless Pursuit of Financial Defaulters: Government’s Firm Stand on Banking Frauds

Finance Minister Nirmala Sitharaman assured action against bank loan defaulters, highlighting government's efforts in tackling frauds effectively. Amid discussions on Banking Laws, she emphasized reduced NPAs and pursued recovery actions. Sitharaman noted significant enforcement achievements and the expansion of financial inclusion and job creation in Public Sector Banks.

In a resolute stance, Finance Minister Nirmala Sitharaman declared the government's unwavering action against bank loan defaulters, including fugitives, in the Rajya Sabha. Addressing concerns during a discussion on the Banking Laws (Amend) Bill 2024, Sitharaman assured the chamber that efforts against financial fraud are intensifying.

The minister highlighted a series of governmental measures leading to a significant reduction in Non-Performing Assets (NPAs) while reinforcing stringent recovery actions against wilful defaulters. She clarified that loan write-offs do not absolve borrower liabilities, as banks pursue recoveries using various legal mechanisms.

Presenting enforcement actions, Sitharaman revealed that the Directorate of Enforcement tackled 912 fraud cases, recovering substantial assets. She illustrated the scope of financial inclusion initiatives, noting the creation of millions of Jan Dhan accounts and robust employment generation within Public Sector Banks, a testimony to the government's commitment to financial reforms and transparency.

(With inputs from agencies.)