The country’s poor are bankable and banks should not shy away from extending credit to them, Urban Development Minister M Venkaiah Naidu said on Wednesday.
“Poor people who take loans, like Self Help Groups (SHGs), the repayment is 98-99 per cent, repayment by Allya and (Vijay) Mallya, I don’t have to say anything,” he said at a Financial Literacy Camp held in New Delhi.
Big borrowers are faltering in repaying loans, not the poor, he said.”Banks should focus more on poor and open bank accounts for them, fund them, guide them,” he said.
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With focus on poor, the government has taken up the task of banking the unbanked, funding the unfunded and reaching the unreached, he said.
Talking about the Goods and Services Tax (GST), he said the Constitution Amendment Bill is expected to be passed in the upcoming monsoon session of Parliament.
The GST Bill, which will help create a single national sales tax to replace several state and central levies, has already been approved by the Lok Sabha or Lower House of Parliament and is pending in the Upper House where the government does not have a majority.
On opposition from Congress on FDI, Naidu said, “Opposing for the sake of opposition is not that good. We have to take a stand based on merit.we are living in a global village. I don’t see any rationale in opposing FDI.”