Finance Minister Nirmala Sitharaman told the Rajya Sabha on Tuesday that the Center had not issued any specific instructions to banks not to extend loans to sensitive customers like police personnel. The Finance Minister made the remarks in response to supplementary questions during Question Hour in the Upper House.
Replying to a question in the Rajya Sabha on Tuesday, Finance Minister Nirmala Sitharaman said there was no official policy directing banks not to extend loans to certain categories of customers.
“Banks make assessments based on KYC and other ratings. I don't think the banks have been given any specific instructions to please give loans to these people, "he said.
In the House, Minister of State for Finance Bhagwat Karde said banks had "problems" in providing loans to police personnel and politicians. He said banks look at their "track record" before giving loans to such customers. He was responding to questions about alleged non-disbursement of loans by banks to politically connected persons (PEPs).
