‘Misrepresentation of Facts is an Insult’: Nirmala Sitharaman Rebuts Rahul Gandhi’s Claims on Public Sector Banks

Union Finance Minister Nirmala Sitharaman strongly criticized Leader of Opposition Rahul Gandhi on Wednesday for his remarks accusing the NDA government of misusing public sector banks (PSBs) to benefit wealthy corporations. Gandhi, after meeting representatives of the All India Banking Officers Confederation, alleged that the Modi government had turned PSBs into “private financiers” for the rich, sidelining public interest.

Responding on social media platform X, Sitharaman dismissed the claims as “baseless” and “offensive” to the hardworking employees of PSBs and millions of citizens who benefit from a reformed, more robust banking system. She emphasized that under the current government, PSBs have witnessed a remarkable turnaround, unlike during the UPA regime, when banks were allegedly forced to extend loans to “cronies” through what she termed as “phone banking.”

Highlighting the government’s initiatives, Sitharaman pointed to 16 credit outreach programs conducted over the last two years, disbursing loans worth ₹24,500 crore to around 9 lakh small clients under schemes like PM MUDRA, Kisan Credit Card, Stand-up India, PM SVANidhi, MSME loans, and agricultural loans. She noted that most of these loans were collateral-free and aimed at supporting common citizens.

Additionally, the Finance Minister underlined employee-friendly measures introduced under the 12th Bipartite Settlement (BPS), which included:

A 17% increase in salaries and allowances, benefiting bank employees significantly.

A revision of medical insurance policies for retirees.

Enhanced welfare fund ceilings, which now allow annual spending to increase from ₹540 crore to ₹845 crore, benefiting 15 lakh current and retired staff.

Taking aim at the UPA’s governance, Sitharaman said that PSBs were misused during that period, leading to a sharp decline in their health. She stated that the NDA government’s reforms, including the Asset Quality Review in 2015 and the 4Rs strategy (Recognition, Resolution, Recapitalisation, and Reform), helped clean up the banking sector and restore its strength.

Earlier, Rahul Gandhi, while addressing his concerns, had alleged that PSBs are now prioritizing profit over public welfare. He criticized staff shortages and high-pressure work conditions, which he claimed prevent banks from serving citizens effectively.

However, Sitharaman firmly countered, stating that Gandhi’s claims overlook the significant progress made in strengthening the banking sector under the Modi government. She concluded by urging the Congress to improve the Leader of Opposition’s understanding of governance and PSB reforms.

News Source : “Information for this article was gathered from a variety of reliable news outlets.”