New Delhi: Prime Minister Narendra Modi on Saturday said that greed for power overrode national interest during the UPA government, wreaking havoc on the banking sector, but his dispensation has nursed it back to good financial health.
Virtually addressing a Rozgar Mela, the Prime Minister, in an apparent swipe at the Gandhi family, said a few powerful politicians close to a particular family would get loans of thousands of crores of rupees to their favourites by calling up banks. Those loans were never meant to be returned.
"The ‘phone banking’ scam was one of the biggest scams of the previous government as it broke the back of the banking system in the country. Phone banking may be a common practice now, but its idea was different for the government that was there nine years ago, as it was not meant for the common citizen," Mr Modi said.
The Prime Minister also said that India is now among the countries with the strongest banking sectors following a series of measures taken by his government.
After handing over appointment letters to over 70,000 recruits, Mr Modi noted that a large number of them have been employed in the banking sector, as he highlighted how it was destroyed under the previous Congress-led dispensation before his government took corrective measures. The United Progressive Alliance was in power from 2004–14.
In his address, the Prime Minister asserted that his government took several measures, including strengthening the management of banks, merging small banks and injecting professionalism, to help the sector.
"Public sector banks were earlier known for losses running into thousands of crores of rupees and non-performing assets (NPAs), but now they are known for record profits," he said.
He also praised banking sector employees for their hard work and commitment to serve people and execute various government schemes to help the poor and unorganised sectors through loans under the "Mudra" scheme and to support women's self-help groups.
Mr Modi said that India has emerged as a centre of global trust and attraction and that the country has to make full use of it. He pointed out that opportunities are increasing in various fields.
"There are many examples of the destruction that is caused when the greed for power overrides national interest. Our banking sector has suffered this destruction under the previous government," the Prime Minister said.
He further noted that loans given to favourites were never really repaid during those times and one loan was sanctioned after another to clear previous dues on paper.
"By laws like the Insolvency and Bankruptcy Code, banks were protected from NPAs, while tough action against those accused of swindling banks, including attachments of their properties, was also taken," Mr Modi said.
The Prime Minister also pointed out that his government has also insured bank deposits up to Rs 5 lakh, ensuring the safety of more than 99 per cent of account holders.
Addressing the gathering, Mr Modi said that it is not only a memorable day for the young recruits but also a historic day for the nation as today (Saturday) marks the day when the "Tiranga" was adopted in its current form by the Constituent Assembly for the first time in 1947.
Noting that the next 25 years are crucial for the recruits and the nation as it charts its path to becoming a developed country, he highlighted the rise of India from the 10th largest global economy to the fifth largest under his government.
"Most experts are of the view that India will become the third-biggest economy in a few years and it will be a monumental achievement. It will give rise to employment opportunities in every sector and also boost the income of the common citizens," Mr Modi said.
He cited a recent NITI Aayog report that said 13-crore Indians were brought above the poverty line in the last five years and lauded the hard work of government servants in implementing welfare measures such as building pucca houses and toilets, opening Jan Dhan accounts and providing electricity connections to the poor.
"This success shows that if we increase the efforts to remove poverty from India, then it can be completely eliminated. And certainly, every government employee has a big role in this," he said.
Mr Modi pointed out that the expansion of the neo-middle class is creating new job opportunities, with their growing demand and aspirations driving the manufacturing sector.
"With the percentage of the ageing population rising and the working-age population declining in many countries, the world is looking at India's talent," he said, highlighting new opportunities for its young citizens.
The Prime Minister mentioned that his government has focused on the skill upgradation of the young population, with the number of professional education institutes rising.
