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Telephone banking under UPA era created NPA crisis: PM Narendra Modi

PM Modi said that the Centre quitely worked on bringing the banking system to back to its wealth

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The important innovation of 'Telephone banking' under the UPA-2 regime has created the problem of NPAs today, taking a dig at the opposition, Prime Minister Narendra Modi said in an interview to the Times of India. The Prime Minister said that the practise of approving loans over a telephonic conversation has created NPA crisis, PSBs are facing today. 

He said that the Gross advances of public sector banks (PSBs) has increased three-fold in six years from 2008 to 2014.

"I had the option of bringing out a white paper on the Indian economy but I did not as it could have alarmed the economy", the PM Modi said in his interview. 

Listing out his government steps to tackle NPAs, PM Modi said that the Centre quitely worked on bringing the banking system to back to its wealth while ensuring banks comply with the regulation. He further added that to address the NPA issue, his government enacted the Insolvency and Bankruptcy Code (IBC). 

"Government also amended the Banking Regulation Act, 1949, to authorise RBI to direct banks to take recourse to IBC route. Cases of 39 large defaulters, with NPAs amounting to about Rs 2.69 lakh crore exposure, have been filed before the National Company Law Tribunal (NCLT), PM Narendra Modi said. 

He further informed that to strengthen PSBs, government has, after initial infusion of Rs 70,000 crore under Indradhanush plan, again announced recapitalisation of Rs 2.11 lakh crore in October 2017. 

On the matter of job creation, PM Modi accused of the opposition of misleading the country. He said the shortcoming lies in the absence or lack of a streamlined database of jobs. 

PM Modi said that his government is working towards creating on jobs. 

Elaborating the government's efforts for the betterment of the Indian economy, PM Modi said that when the NDA government came to power, the country was struggling with NPAs, ease of doing business and low investment in infra sector among other issues. 

"Because of government's efforts our economy is today growing at a rate of over 7.5%, the highest among major economies', he said. 

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