Phone banking scam one of biggest in last regime: PM

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New Delhi, July 22

PM Narendra Modi on Saturday said the “phone banking scam” was one of the biggest scams during the previous government whereby people close to a “specific family” would call banks to get loans worth thousands of crores which were never repaid.

“Today, India is among the countries whose banking sector is considered to be robust,” said Modi, recalling the journey of the past nine years on the occasion of distribution of appointment letters to around 70,000 new recruits via video-conferencing.

He said during the previous government’s rule, the banking sector witnessed a massive destruction. “Now, we are able to make digital transactions. However, nine years ago, phone banking was not for 1.4 billion people (but for a few). People who were close to a ‘specific’ family used to call banks to secure loans worth thousands of crores; these loans were never repaid,” he told appointees. — TNS

Banks suffered

Those close to a specific family would get loans of thousands of crores of rupees by calling up banks, which were never meant to be returned. — Narendra Modi, PM