Finance Minister Nirmala Sitharaman informed Parliament that the Center has not issued any specific instructions to banks not to give loans to “sensitive customers” like police personnel.
Highlight
- ‘No official policy directing banks not to lend to certain categories of customers’
- ‘Banks make assessments based on KYC and other ratings like civil rating’
- MoS Finance said banks have “problems” in lending to police and politicians
Finance Minister Nirmala Sitharaman on Tuesday informed Parliament that the Center has not issued any specific instructions to banks not to give loans to “sensitive customers” such as police personnel.
During Question Hour in Rajya Sabha, Sitharaman said there is no “officially declared policy” directing banks not to extend loans to certain categories of customers.
“Banks do assessment on the basis of KYC and other ratings like citizen rating. I don’t think any specific instruction is given to banks – please be careful not to lend to these people,” he told the Upper House while answering supplementary questions. said in. ,
However, banks exercise a certain level of discretion based on their available KYC (Know Your Customer).
What did MoS (Finance) say on this issue?
Minister of State for Finance Bhagwat Kishanrao Karad said banks have “problems” in giving loans to police and politicians. He said that banks look at the track record before giving loans to these customers.
Responding to another question on banks not lending to Politically Exposed Persons (PEPs), the Union Finance Minister said, “… there is a need where there is financial action on terror funding.”
So according to him, the minister said that each account has to be kept on a tab, where large funds are transferred to a sensitive bank account, he said.
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