Andhra Pradesh: Banking Services Reaching Every Village, Says Nirmala Sitharaman
The Centre has introduced schemes under which even street vendors can avail bank loans without collateral: Nirmala Sitharaman
VIJAYAWADA: Union finance minister Nirmala Sitharaman on Friday said the Narendra Modi-led government is committed to ensuring that banking services reach every village, making institutional credit accessible to all sections of society sans any hurdles.
Addressing a credit outreach programme and loan mela at Narasaraopet in Palnadu district, the Union minister said the Centre has undertaken sweeping reforms in the banking sector since 2014, transforming it from a system burdened by non-performing assets into one focused on financial inclusion and economic empowerment.
She claimed that the government had changed the traditional approach to banking, by taking banks to the people instead of expecting people to approach banks. “As a result, lakhs of beneficiaries across the country are now able to access loans with ease.”
Sitharaman said the Centre has introduced schemes under which even street vendors can avail bank loans without collateral. The government acts as the guarantor. Providing unsecured loans at affordable interest rates has enabled small traders, women entrepreneurs and self-employed persons to expand their businesses and improve their livelihoods, she claimed.
The finance minister said many people in the past never considered approaching banks for credit and instead depended on private moneylenders charging exorbitant interest, particularly for microfinance needs. “The NDA government had intervened to end this dependence by ensuring easy access to formal banking channels.”
Drawing a contrast with previous governments, Sitharaman alleged that between 2004 and 2014, the banking system was influenced by "phone banking", where loans were allegedly sanctioned based on political recommendations. She claimed that such practices led to repayment problems and mounting stress in the banking sector.
“Banks are now proactively visiting villages, identifying genuine beneficiaries and extending loans based on eligibility rather than influence,” she claimed.
The Narasaraopet Credit Outreach Programme, she said, reflected the changing mindset of both banks and the public. Banks across the country have adopted a customer-centric approach, extending loans worth crores of rupees to traders and entrepreneurs to help them build sustainable businesses.
Reaffirming the central government's vision, Sitharaman said, “India's goal is to become a developed nation, or Viksit Bharat, by 2047, and an inclusive, transparent and accessible banking system would play a crucial role in achieving that objective.”
