The Prime Minister has spoken out regarding the NPA problem left behind by the UPA government in the parliament. He said that he did not speak on the issue in spite of the accusations hurled at the government by the opposition parties for the sake of country’s economy.
I have to tell the entire nation about the NPA mess our previous Government created: PM @narendramodi
— PMO India (@PMOIndia) February 7, 2018
He said the entire ‘paap’ (sin) of NPA belongs to the UPA government as they had been giving loans to their cronies. He also accused them of hiding the NPA details from the country by restructuring the loans of their cronies. We had done a detailed report on the NPA issue earlier.
What damage could’ve happened if the PM produced a white paper on NPAs in 2014
Bank run: The banking system runs largely on the basis of the faith of the depositors. Loans are given out from the deposits of the banks for businessmen, personal purposes, education, etc. However, if a significant number of depositors of a bank start withdrawing their money from banks en masse, the entire bank will fail. If such a phenomenon happens to every major bank, then the entire banking system will collapse. This phenomenon is called a bank run by economists.
Modi did a great service to the nation by resisting the urge to produce a white paper
If banks fail, the entire economy of the country will collapse. Thus, Modi did a great service to the nation by ensuring that the trust of the people in the country’s banks remains intact even at the cost of negative political propaganda by the Congress party. Now, that the mess has been addressed in a systematic manner and a plan for recapitalisation and reform of banks is in place, he came out in the open and placed the facts before the country
The workings of our previous Government are responsible for the NPA mess. They are 100% responsible and nobody else. The banking policies of the previous Governments were not proper. Middlemen were happy, the country was suffering: PM @narendramodi in Lok Sabha
— PMO India (@PMOIndia) February 7, 2018
The Congress party tried to shout down the prime minister throughout his speech during his address. Once more information is made available on the subject, we will realise the magnitude of the scam of Congress parties in the NPA mess.
