Extend loan without fear, Finance Minister tells banks

New Delhi, May 23

Finance Minister Nirmala Sitharaman today said that banks had been asked to extend loans automatically to eligible borrowers without the fear of 3Cs — CBI, CVC and CAG. She said clear instructions had been given at a meeting with CEOs and MDs of public sector banks and financial institutions that the banks should not be scared to extend loans as 100 per cent guarantee was being given by the government.

In case of default, the individual bank or official would not be hauled up, she said in a conversation with BJP leader Nalin Kohli uploaded on the party’s social media platforms.

“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 ...,” she said.

It is being said that genuine bonafide decisions in the banking sector are being impacted because of worry of undue harassment by the CBI, CVC and CAG. “The Finance Ministry has taken several steps to allay those fears, including withdrawing some notifications which were causing fears among bankers,” she said.

On criticism about leaving out critical sectors, including hospitality, auto and civil aviation, in the economic package, Sitharaman said the government had not taken a sectoral approach but a holistic one.

She expressed the 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. — PTI

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