NEW DELHI: Nirmala Sitharaman, the Union Finance Minister, on Monday slammed the previous UPA administration for allegedly failing to recover money from those who turned their loan accounts into non-performing assets, claiming that under the Modi government, banks for the first time received money from defaulters.

In the Lok Sabha, Sitharaman further stated that actions had been taken against those who have defrauded small savings depositors through different fraudulent acts, including the filing of FIRs.

Writing off NPAs does not imply forgiving the debt, said Finance Minister Nirmala Sitharaman in answer to a question from Sriperumbudur MP T.R. Baalu during Question Hour on Monday in the Lok Sabha. The Finance Minister explained to the House that banks create a provision for money owed from NPA accounts as part of the accounting process, which is referred to as "writing off."

Sitharaman went on to say that the defaulter is being pursued. She informed the Lower House that numerous public sector banks had recovered their funds by claiming the defaulter's assets and securities. "This is the first time that NPAs are being pursued and actions are being taken against them," she continued.

"During the UPA's tenure, NPAs were left by the dozen and by the tonne. These defaulters were never given money to return to the banks "In the Lok Sabha, she stated.

States to receive Rs.53000-Cr from Centre as GST compensation

Lok Sabha approves Finance Bill; completes budgetary exercise for FY23

Finance Ministry proposes amendments, tighten norms for cryptocurrency taxation