Hold Your Nerves: Rs 14.56 Lakh Crores Written Off in 9 Years!

Cibil score will get affected if the EMI payment gets delayed. Non-payment of credit card bills on time will also affect the Cibil score. The list concerning the common man goes on and if anything goes wrong with the banks, then they cannot even get a loan. Not just that, the banks and financial institutions will be very careful with such people. Very often the doubt of why the banks which are very strict with individuals don't do the same with the institutions raises.

There is no answer to this. Those who know about the recent stats and the information will surely get a big shock. Is the public money getting wasted so much? Why the governments are hesitating to take strict action against the responsible when the taxpayers' money is getting affected is the question here.

The banks which are very strict towards individuals in such matters are behaving contrary to this with the institutions. Why? This is the question here. During the Parliament sessions, the question of what is the amount of bad debt write-off of heavy industries and services sector. Was asked. The answer given by Minister of State for Finance Bhagwat Karad raised the question of did the Centre write-off such a big amount.

The Minister said Banks in India wrote off bad loans worth Rs 14,56,226 crores in 9 years after the Modi government assumed office. Though it is said that the legal recovery measures related to the accounts of these companies will continue, we have to say that they would have no result. It has been said that the government and the Reserve Bank of India have taken comprehensive measures to reduce the weight of bad debts. It is stated that while the gross NPAs of public sector banks stood at Rs.8.96 lakh crore as on March 31, 2018, the value was reduced to Rs.4.28 lakh crore by March 31, 2023, the Minister said.

It was also said that if the institutions which took loans of more than Rs 5 crore from the banks became defaulted, the concerned banks will inform the CRILC every week. We have to say that the increase in financial jurisdiction of debt recovery tribunals from Rs.10 lakh to Rs.20 lakh has allowed them to focus on more accounts. It was also informed that the National Asset Reconstruction Company Limited was set up to sort out the issues of assets carrying the pressure of more than Rs 500 crores.

A few restrictions were brought for the companies which deliberately skip debts. It is said that the unit which wrote off the loans has been banned from conducting new ventures for five years. Despite this, how should we see the situation of writing off the debts? This is the question here.