Urban Mirror Correspondent
New Delhi, December 21: The Lok Gathbandhan Party (LGP) today said that Rs 41,000 crore recapitalisation plan for public sector banks (PSBs) would put additional burden on poor people of the country. The LGP said the PSBs have been financially bleeding the nation for a long time with massive piling up of non-performing assets (NPAs) and corporate frauds, but the successive governments had not taken effective measures to control the crisis.
The spokesman of the party said here on Friday that additional recapitalization of Rs 41, 000 crore as planned by the NDA Government would entail further burden. The spokesman said recapitalization of banks over the last ten years following rising NPAs and corporate frauds have pushed the banking sector to disaster and shaken the confidence of small depositors in banking. The spokesman further said the Reserve Bank of India (RBI) too has not been able to effectively control the functioning of these public sector banks because of governmental control over them. The spokesman said during the last 11 years the central government had pumped in nearly Rs 2.6 lakh crore into these banks to sustain their functioning. With crisis of governance assuming serious proportion in the banking sector, the spokesman said with this state of affairs the economy is destined to crash. The spokesman said without political motive the country required immediate corrective measures to set the rot into the banking sector.
Pointing out that banking sector is in dire distress with Nirnav Modis and Mehul Choksis plundering the banks, the spokesman said there seems to be no fool proof plan with government to eliminate the ills afflicting the sector. The spokesman said the shock of demonetization has still been continuing. The spokesman said in fact the people have lost faith in NDA government’s financial policies, as so far it has failed to protect their interest. Holding NDA government fully responsible for banking scandals the spokesman said BJP owed an explanation to the nation for the financial crimes committed by anti-national forces. The spokesman said the dimension of financial terrorism could be gauged from the fact that every four hours one bank officer is being held for fraud in the country.
