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Venkaiah Criticises Loan Waiver Culture

Blaming loan-waiver schemes for weakening the banking system, Union Parliamentary Affairs Minister M Venkaiah Naidu on Saturday urged State governments to encourage loan re-payment habit among debtors rather than waiving off loans. Speaking at a seminar, jointly organised by Swarna Bharat Trust and FSME here, the Union Minister said banks can provide loans at lower interest rates only when the entire banking system became robust.

“If loans are repaid there will be possibility for lending more amounts in form of loans. Encouraging loan waiver is not healthy for financial sector. People have to be told about the benefits of repaying their loans, “he said. The Union government was focusing on opening bank accounts for everyone in the country to give fillip to transparent financial activity besides providing subsidies to poor and deprived, he added.

On Good and Service Tax (GST) Bill, he said the GDP would grow 1.5 to 2 per cent if it was enforced, and informed that the Bill would be taken up in upcoming session of the Parliament. Meanwhile, Union Minister of State for Micro, Small and Medium Enterprises Giriraj Singh said they were ready to start incubation centers in all districts if the AP government came forward to support them.

They have to provide land and give all necessary permissions to take up the activity shortly, he added. The Minister said they were ready to set up Gems and Jewellery Cluster in Nellore district. He announced that they were ready to use the services of Nellore artisans to conduct training session in Bihar. Giriraj Singh announced that they would give 40 per cent subsidy to coir-based industries in coastal areas.

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