Non-performing property of banks declined to Rs 5.70 lakh crore in December 2020 and the recovered quantity stood at Rs 2.74 lakh crore following a slew of measures taken by the federal government, Union Minister Anurag Singh Thakur informed Rajya Sabha on Tuesday. During Question Hour, the Minister of State for Finance additionally stated the Insolvency and Bankruptcy Code (IBC) has helped within the restoration of NPA (Non-Performing Assets). “There has been a reduction in gross NPAs. The NPAs – which stood at Rs 8.96 lakh crore in 2018 – have reduced to Rs 5.70 lakh crore in December 2020. Recovery of Rs 2.74 lakh crore was also made,” Thakur stated whereas replying to a supplementary query within the Upper House.
According to him, the incidence of frauds, which resulted in excessive NPAs, has additionally witnessed a pointy decline because of steps taken by the federal government. The incidents of frauds decreased to 0.23 per cent from 1.01 per cent in 2013-14, the minister added. Further, Thakur stated IBC introduced by the federal government has resulted in main reforms and bettering the debtor-creditor relation and higher restoration fee.
Under the current regime, banking has vastly improved, from telephone banking to digital banking, which has resulted in transparency and accountability, he famous. In reply to a supplementary query, Thakur stated 7 out of 12 public sector banks have taken up on precedence efforts to introduce digital banking and added that this may end in competitors with the non-public sector banks and profit customers with higher merchandise. The minister praised initiatives just like the SBI Yono service.
UPI Bhim was being praised by large firms like Google and Facebook, he added. In reply to a different supplementary by Anil Desai (Shiv Sena) who needed to know whether or not the platform for offering and processing loans in 59-minutes has miserably failed, Thakur stated that the member got here from the financial capital of the nation which resulted in an uproar. Deputy Chairman Harivansh stated nothing will go on file besides the reply. Thakur stated banks have already sanctioned Rs 60,000 crore on the 59-minutes platform.
Further, the minister stated that what the federal government inherited in 2014 was a banking system in shambles however now there have been many reforms. Banking facility in seven native languages has ensured broad outreach, Thakur stated, including “this will cater to smart lending to aspiring India – rural or urban”.