Nirmala Sitharaman Slams Rahul Gandhi’s Remarks on Public Sector Banks, Calls It an Insult to Citizens

New Delhi – Finance Minister Nirmala Sitharaman has strongly criticized Leader of Opposition Rahul Gandhi for his remarks on Public Sector Banks (PSBs), calling them a "misrepresentation of facts" and an "insult" to the hardworking employees and citizens who benefit from a stronger banking system.

Taking to social media platform X, Sitharaman emphasized the significant turnaround in the public banking sector under Prime Minister Narendra Modi’s leadership. She cited the recapitalization of ₹3.26 lakh crore in the past decade and several reformative measures as evidence of progress.

Her remarks came after Rahul Gandhi, following a meeting with representatives of the All India Banking Officers Confederation, accused the government of prioritizing profit over people in PSBs. “Public Sector Banks are being forced to prioritize profit over people. With staff shortages and a toxic work environment, they are expected to achieve unrealistic targets,” Gandhi alleged.

Sitharaman’s Response

Sitharaman dismissed Gandhi’s allegations, accusing the Congress-led United Progressive Alliance (UPA) government of fostering a culture of "phone banking" that pressured banks to grant loans to cronies. She said that the Modi government addressed these issues through an Asset Quality Review launched in 2015 and introduced reforms such as the “4Rs” strategy – Recognition, Resolution, Recapitalization, and Reforms – to restore the health of PSBs.

Highlighting the government’s efforts, Sitharaman stated, “Since 2014, PSBs have recruited 3.94 lakh employees, and as of October 2024, over 96% of officer and subordinate staff positions are filled. Recruitment drives and Rozgar Melas have been organized to tackle vacancies effectively.”

She further noted the success of women in leadership roles within the banking sector, reflecting the government’s commitment to women-led development.

Financial Inclusion Milestones

Sitharaman also pointed to the government’s achievements in financial inclusion, citing:

• 54 crore Jan Dhan accounts opened since 2014.
• Over 52 crore collateral-free loans sanctioned under schemes such as PM MUDRA Yojana, Stand-Up India, PM-SVANidhi, and PM Vishwakarma.

“Citizen-centric governance and inclusive development are the core principles of the Modi government,” she added.