Banks are not discouraged from granting loans to police officers: Nirmala Sitharaman


Nirmala Sitharaman said banks are not discouraged from granting loans to police personnel

Finance Minister Nirmala Sitharaman informed parliament on Tuesday that the Center had issued no specific instructions to banks asking them not to grant loans to “sensitive clients” such as police personnel.

Ms. Sitharaman, during question time at Rajya Sabha, said there was no “declared official policy” ordering banks not to extend loans to certain categories of customers.

“Banks do assessments based on KYC and other ratings like civilian ratings. I don’t think there are any specific instructions given to banks – be careful not to lend to these people,” he said. she said in the upper house while answering a supplementary question. .

However, banks exercise a certain level of discretion depending on their available KYC (know your customer), she added.

State Finance Minister Bhagwat Kishanrao Karad said banks have “problems” lending to police and politicians. Banks have a track record of lending to these customers, he added.

Responding to another question on banks that do not lend to Politically Exposed Persons (PEPs), Ms Sitharaman said: “… this is more in terms of large sums being transferred from one account to another in accordance with to the global requirement that financial action on terrorist financing occurs. “

So, according to them, the minister said that each account will have to be kept on a tab where a huge amount of money is transferred to a sensitive bank account, she added.


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