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Congress Denounces ₹12 Lakh Crore PSB Loan Write-Offs as ‘Freebies’ for the Rich

The government insists write-offs adhere to RBI provisioning rules without absolving borrower liabilities.

'Robbing poor to benefit rich is Modi govt's mantra': Cong on loan write-offs by PSBs

Overview

  • Public sector banks wrote off ₹12.08 lakh crore in bad loans between FY2015-16 and FY2024-25, according to a written reply in the Rajya Sabha.
  • The RBI mandates banks to write off fully provisioned non-performing assets after four years under board-approved policies.
  • The Finance Ministry emphasizes that write-offs do not waive borrower liabilities and banks continue recovery efforts against defaulters.
  • Congress president Mallikarjun Kharge described the write-offs as ₹12 lakh crore in ‘freebies’ for billionaire friends and labeled the policy as favoring the rich over the poor.
  • The debate has intensified concern over economic inequality and the use of public funds for loan write-offs, with both sides clashing in parliament and on social media.