According to reserve Bank of India ,reserve Bank of India) data, public sector banks have recovered Rs 4,80,111 crore including Rs 1,03,045 crore from loans written off during the last five financial years.
“As per information received from RBI, scheduled commercial banks have written off an amount of Rs 10,09,511 crore during the last five financial years,” Sitharaman said during Question Hour.
He said that the borrowers of the written off loans would continue to be liable for repayment and the process of recovery of dues from the borrowers in the written off loan accounts is on.
Sitharaman said that banks have continued the recovery action initiated in the written off accounts through various recovery mechanisms available to them.
Actions involving filing of suit in civil courts or in debt recovery tribunalRegistration of cases, action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 National Company Law Tribunal Through negotiated settlement and sale of NPAs under the Insolvency and Bankruptcy Code, 2016.
“Hence, the borrowers do not benefit from the write-off,” she said. The minister said that as per the RBI guidelines and the policy approved by the banks’ boards, NPAs, including those in respect of which full provisioning was made on completion of four years, were written off as NPAs. balance sheet Of corner Worried through write-off.
He added that banks will evaluate and consider the impact of the write-off as part of their regular exercise in accordance with RBI guidelines and their Board approved policy to clean up their balance sheet, avail tax benefits and optimize capital. We do.
Responding to a question, Sitharaman said that the process of recovering Funds The number of loan defaulters to small depositors and investors was complicated because the legal process was lengthy and there were many claimants to the seized assets, including banks and other financial institutions.
The Minister said that he is aware that the depositors are facing extreme difficulties and there is a need to look into the issue and simplify the process.
Earlier, Minister of State for Finance Bhagwat Kishanrao Karad said that the names of loan defaulters were not disclosed due to RBI guidelines, but their names could be disclosed after their properties were put up for auction.