Will recover cash locked up in fraudulent accounts: FM

Union Finance Minister Nirmala Sitharaman, on Friday, said no fraudulent account in the banking system will be left without being taken to the court.

“We shall get that money back to you because you are the custodian of those monies...And fraudsters have no place in this country and banks shall not suffer for the monies which have been taken away by them.

“And this I say with confidence because, in the last few years, we have done it. I’m not talking out of the blue,” she said in her address to top bankers at the 75^th annual general meeting of the Indian Banks’ Association (IBA).

Sitharaman emphasised that the law enforcement agencies are making sure that banks get back the monies locked up in accounts, which were declared fraudulent.

“The assets have been put on auction. The monies have come…The money, which was almost given up, has come,” said the Minister even as she emphasised the support the government is extending to the banks, especially public sector banks.

“So, if that is the kind of support….I would certainly love to see banks now plan for the Amrit Kaal (perfect time for the next 25 years),” said Sitharaman.

She underscored that if India has to be a developed country by 2047, which it so deserves to be, it is the banking sector that has to make a big contribution to achieve this goal.

“And there is no denying that Banks are the biggest catalysts. You are the ones who are going to facilitate businesses to run, agriculture to be comfortably placed, small businesses to be given adequate capital…corporate sector to be supported with prudential decisions…,” said the Minister.

She noted that banks’ money is coming back, they are able to go to the market to raise resources, they have got the opportunity to have more professionals in their management.

“India is the fifth ranking global economy…then what best time to think about what you want to do in the next 25 years. In the next 25 years, I would think, you will have to have strategies to meet up to the aspirations of the younger population,” said Sitharaman.

She observed that there is no way banks can any longer run with crony kind of a background.

“This government has ensured there are no “instructions” relating to funding given to the banks. Professionalism is what you are all moving towards and we need to take that forward at a faster pace,” said Sitharaman, even as she underscored that the government wants to let the banks be and carry on the functions as they should.

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