Udayavni Special

Don’t fear CBI, CVC, CAG; extend loan to eligible borrowers: FM to bankers


PTI, May 24, 2020, 11:46 AM IST

New Delhi: Finance Minister Nirmala Sitharaman on Saturday said banks have been asked to extend loans automatically to eligible borrowers without fear of 3Cs – CBI, CVC and CAG.

She said clear instructions have been given in a meeting with CEOs and MDs of public sector banks and financial institutions on Friday that the banks should not be scared to extend loans as 100 per cent guarantee is being given by the government.

In case of default, the individual bank or official will be hauled up, she said in a conversation with BJP leader Nalin Kohli uploaded on the party’s social media platforms.

“Yesterday, I reiterated that by saying, if a decision goes wrong and if there is a loss, the government has given 100 per cent guarantee now. It is not at all going to be on the individual official and on the bank, and therefore without fear they should take this automatic route in the sense, everybody eligible for additional term loan and additional working capital should be given,” she said.

As part of the Rs 20.97 lakh crore comprehensive economic package, the government announced the Emergency Credit Line Guarantee Scheme (ECLGS) worth Rs 3-lakh crore for the MSME sector, hit hard by the coronavirus crisis.

It is being said that the genuine bonafide decisions in the banking sector are being impacted because of the worry of undue harassment by 3Cs – Central Bureau of Investigation (CBI), Central Vigilance Commission (CVC) and Comptroller and Audit General (CAG).

The Finance Ministry has taken several steps to allay those fears including withdrawing some of the notifications which were causing fears among bankers, she said.

“…concerns these banks have had in their minds earlier and may have even now are absolutely well-founded. In fact, through my last 7-8 months, I have spent at least three different times with the banks to say that the fear of the 3Cs as they refer to the CBI, CVC, and also the CAG should not be in their minds,” she said.

When asked about criticism about leaving many critical sectors including hospitality, auto and civil aviation in the economic package, Sitharaman said the government has not taken a sectoral approach but a holistic approach.

“Except agriculture and the power sectors where reforms would be undertaken, other than that I have not come up with any sectoral reference. What has now become to be called as the MSME package, it includes MSME, and also aims at touching others (sectors) too,.. so the sectors that you are referring to can also benefit through this,” she said.

It is based on the understanding that any enterprise “with a certain exposure to the bank and with a certain invested capital, or with a certain turnover if they need additional term loan, additional working capital in order to buy their own material to restart, in order to be able to pay some fixed cost, it can take that route,” she said.

She expressed hope that from June 1, liquidity would start flowing from banks without any new collateral.

During the meeting with bankers, the Finance Minister said it was emphasised that the loans should be sanctioned in a simple manner and if possible digitally to avoid any physical contact.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

462 new COVID-19 cases, 9 deaths in Karnataka

BSF opens fire at drone along Indo-Pak border in Punjab’s Amritsar sector

Any person from outside Gandhi family should become next Cong chief, not Rahul Gandhi: Athawale

Maha Terror case: SC says ATS not barred from investigation till NIA took over probe

India-Lanka ties getting stronger and stronger: PM Modi

Yediyurappa asks Nalin Kumar Kateel to not make disparaging remarks against Rahul Gandhi

Karnataka bans celebrity birthday parties at child care homes

Related Articles More

High oil prices will undermine global recovery, warns India

Markets skid for 2nd day as profit-booking takes hold

Jio gains 6.49 lakh mobile users in Aug; Airtel adds 1.38 lakh

Ola restructures organization to strengthen mobility biz

SEC report questions trading apps after GameStop frenzy

MUST WATCH

Air Layering Method – How It’s Made

News Bulletin 20-10-2021

Mysore Ambaari Bus Trip | Dasara 2021

Elephant Attack at Tibet Camp in Hunsuru

Pady Harvesting Mechine fare hike


Latest Additions

462 new COVID-19 cases, 9 deaths in Karnataka

BSF opens fire at drone along Indo-Pak border in Punjab’s Amritsar sector

20 more acquitted in 2013 Muzaffarnagar riot case

Minor girl gang-raped in Kerala, four held

Any person from outside Gandhi family should become next Cong chief, not Rahul Gandhi: Athawale

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.