Prime Minister Narendra Modi has blamed the previous UPA government for huge Non-Performing Assests, NPA and said their polices have destroyed the banking sector.
Speaking at the launch of the India Post Payments Bank (IPPB) in New Delhi yesterday, Mr Modi said that the NDA government has not only identified the cause of rising NPAs but also took measures to deal with them. He said, the government has not given any big loan in its tenure.
He said, action has been initiated against 12 big defaulters who were given loans before 2014 resulting in total NPAs of 1.75 lakh crore rupees. Mr Modi asserted that the government will bring back money from those who have defrauded the banks.
The Prime Minister said that Mudra loans worth over 13 lakh crore rupees have been given so far to the poor and middle class, for creating self-employment opportunities. He said today India is not just the fastest growing economy in the world, but also the country that is eradicating poverty the fastest.
The Post Payments Bank will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments and enterprise and merchant payments.
The IPPB will have 650 branches and 3,250 Access Points across the country. All the 1.55 lakh Post Offices in the country will be linked to the IPPB system by the 31st of December this year.