Banks Had ‘Worst Phase’ Under Manmohan & Rajan
Finance Minister Nirmala Sitharaman has accused former PM Manmohan Singh and Ex-RBI governor for the bad phase of banking during their reign.
Many are not happy with Finance Minister Nirmala Sitharaman. People in India are blaming her for the economic problems in India that are affecting the Manufacturing and Financial companies.In order to boost India’s economy she even gave a tax benefit in September.
Former Prime Minister Manmohan Singh and the Ex-Governor of the RBI Raghuram Rajan are not happy with the BJP governments policies. They especially not happy with the decision of Demonetisation. According to the RBI Governor our economy is heavily dependent on cash but when the BJP government decided demonetise notes it severely affected the economy. He said that the BJP government is responsible for the horrible state of the Indian economy.
Finance Minister Nirmala Sitharaman was at the Columbia University's School of International and Public Affairs on 15th October. A member of the audience asked her about what she felt about Rajan’s comments, Nirmala said that when Manmohan Singh and Rajan were in power the government banks were through a very bad phase. Under their leadership, banks gave out loans without properly investigating. This is why there are so many fraud cases. According to the RBI Unreturned loans were Rs.9,190 crore in 2011-2012 but it increased to Rs. 2.16 lakh crore in 2013-2014. She said that when Rajan was Governor of RBI, loans were given just based on phone calls from crony leaders. This why now there are news about banks going bankrupt because loans worth thousands of crores of rupees have not been returned. Banks are now dependent on the government for help.