Loan Write-Off

Finance Minister Nirmala Sitharaman on Monday said that scheduled commercial banks have written off loans amounting to over 10.09 lakh crore in the last five financial years and the process of recovery of dues from the borrowers continues. Sitharaman during her reply in the Lok Sabha stated that banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available.

 “Therefore, write-off does not benefit the borrowers,” she said. Replying to a question, Sitharaman said the process of retrieving money of small depositors and investors from loan defaulters was very complicated as the legal process was lengthy and there were multiple claimants to the seized assets that included banks and other financial institutions. The finance minister said that she was aware of the depositors undergoing extreme difficulties and there was a need to look into the issue and how to simplify the process. S-ET

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