Extend loan automatically to all eligible borrowers without fear of 3Cs: FM to banks

New Delhi:  Finance Minister Nirmala Sitharaman on Saturday said banks have been asked to extend loans automatically to eligible borrower...

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 not 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 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 sai-d.


-Source: News Agency

COMMENTS


*

Name

AROUND THE GLOBE,434,business,28,BY READERS,358,FEATURE,190,GLOBE,15,KERALA,6,Movie,267,SPECIAL STORY,298,TAMILNADU,2,TOP STORY,892,TRAVEL,8,
ltr
item
Local Glob: Extend loan automatically to all eligible borrowers without fear of 3Cs: FM to banks
Extend loan automatically to all eligible borrowers without fear of 3Cs: FM to banks
https://1.bp.blogspot.com/-q34Q1hctNQ0/XsqOe1uxraI/AAAAAAAAsDo/rd2lcfCH9HcLPQ8oPMV9H3Bk-_3fyezhgCLcBGAsYHQ/s320/minister%2Bnirmala.png
https://1.bp.blogspot.com/-q34Q1hctNQ0/XsqOe1uxraI/AAAAAAAAsDo/rd2lcfCH9HcLPQ8oPMV9H3Bk-_3fyezhgCLcBGAsYHQ/s72-c/minister%2Bnirmala.png
Local Glob
http://www.localglob.com/2020/05/extend-loan-automatically-to-all.html
http://www.localglob.com/
http://www.localglob.com/
http://www.localglob.com/2020/05/extend-loan-automatically-to-all.html
true
8255692317570297677
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy