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Rahul Gandhi Vs. Nirmala Sitharaman: War Of Words Over Public Sector Banks
- A heated exchange unfolded between Congress MP Rahul Gandhi and Union Finance Minister Nirmala Sitharaman over the role and management of public sector banks (PSBs).
- Gandhi criticized the BJP government for allegedly prioritizing corporate interests, while Sitharaman countered by highlighting reforms and blaming the UPA era for past mismanagement.
A clash erupted between Union Finance Minister Nirmala Sitharaman and Congress MP Rahul Gandhi regarding the management of public sector banks (PSBs) in India.
Rahul Gandhi accused the BJP-led government of exploiting PSBs as an unlimited funding source for "fraudulent friends." In response, Sitharaman criticized the Congress-led UPA regime, alleging that it used PSBs as "ATMs for cronies and shady businessmen."
Speaking in the Lok Sabha on Wednesday, Gandhi shared concerns raised by a delegation from the All India Banking Officers Confederation. He claimed the delegation expressed distress over the condition of PSBs and their impact on the public.
“Public Sector Banks were established to ensure credit accessibility for all Indians. However, the Modi government has turned these institutions into financiers for rich corporations,” Gandhi tweeted. He further accused the government of pressuring PSBs to focus on profits over public welfare, despite inadequate staffing and challenging work conditions.
Gandhi also highlighted the lack of equal opportunities for women in PSBs and their struggles with dissatisfied customers. He urged the government to stop using PSBs as a financial cushion for the wealthy, emphasizing that their role extends beyond generating dividends for the state.
Countering Gandhi’s claims, Sitharaman described his allegations as "baseless" and asserted that PSBs have undergone significant improvement under PM Modi’s leadership. She attributed the previous decline in PSBs to indiscriminate lending and corporate credit concentration during the UPA regime.
Sitharaman further alleged that UPA-era "phone banking" practices compelled bank employees to sanction loans for select cronies. In contrast, she highlighted the government’s focus on citizen-centric and inclusive development, citing successful schemes like PM-MUDRA and PM-SVANidhi.
Under these initiatives, she noted that 68% and 44% of beneficiaries were women, respectively. She also pointed to a 238% rise in loans up to ₹10 lakh and a 300% increase in loans up to ₹50 lakh over the last decade.
“Rahul Gandhi’s misrepresentation of facts is a disservice to hardworking PSB employees and citizens who benefit from a cleaner, stronger banking system. Congress needs to up-skill their leadership on governance,” she added.
