Prime Minister Narendra Modi on Saturday said the Congress had left the nation’s economy on a landmine. Speaking at the launch of the India Post Payments Bank, Modi blamed the previous government led by the United Progressive Alliance for the bad loans and said every penny given at the behest of namdars (dynasts) will be recovered, PTI reported.
“Loans were given on phone calls made by namdars [dynasts],” he said. “Knowing fully well that loans will not be paid back, banks lent money on orders of a family to a few.” Modi also charged the previous government with hiding the extent of non-performing assets.
Modi said 12 of the biggest loan defaulters have an outstanding of Rs 1.75 lakh crore. Another 27 have Rs 1 lakh crore. “We never gave any loans to any of the 12 big defaulters,” he said, adding that that action was being taken against the loan defaulters.
The India Post Payments Bank will provide banking and financial services in rural areas by leveraging the network of the postal department. IIPB will have 650 branches and 3,250 access points spread across the country.
Modi said September 1 will be remembered as the beginning of an unprecedented facility in the history of the country. “Through India Post Payments Bank we will reach to every nook [and] corner of the country,” ANI quoted Modi as saying. “Bank [and] banking services will be available at every person’s doorstep.” Modi also said the government is working on transforming the old system now.
According to an official statement, around 3 lakh postmen will offer services and financial guidance to customers in areas where banking facilities are not available. All the 1.55 lakh post offices in the country will be linked to the IPPB system by December 31.
IIPB will provide customers savings and current accounts, besides services including bills and utility payments, money transfer and direct benefit transfers, among others. It will also have netbanking and mobile banking facilities. The payment banks has tied up with Bajaj Allainz Life Insurance and PNB Met Life to offer insurance policies.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!