Finance Minister of India said that the public sector banks are just the facilitator for the government sponsored loans and they must follow the instructions provided to them by the ministry.
Banks are not authorized to judge the viability of the loan proposals if it is guaranteed by the Government or schemes.
As quoted by FE,
“Now I am pushing the banks saying that it’s not their risk, we have taken the risk on ourselves, they should now facilitate the process…”We have very clearly told banks that they are not going to sit on judgement of anybody’s viability. Now it is the question of giving them resources, hand holding them so that they survive,” Sitharaman added.
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