Public Sector Banks have submitted a list of demands to the Ministry of Finance, detailing how they’ve “lost business” due to bad loans and the recent demonetization.
Bad loans being their own problem, the recent demonetization affected all us Indians, but only the Public Sector Banks seem to be getting a bailout of Rs.25,000 crores – all because their business took a hit. Everyone took a hit, but regular Indian citizens won’t get any sort of respite, it seems, despite lining up outside banks every day for an entire month just to be able to put food on the table. The banks and the government held Indians’ own money hostage, and made them jump through hoops to access what rightfully belongs to them.
Indians pay taxes on income, taxes when buying things, taxes when going to the movies, taxes when treating themselves to a meal, and at a relatively high rate at that. Indians pay these taxes in good faith and with the best intentions, thinking that their money will somehow help build better roads, establish infrastructure, keep the lights on at night, and basically improve the living conditions around them.
Sadly, around Rs.25,000 crore of Indians’ hard earned money that’s paid with good intentions as tax is being diverted to banks to erase their mistakes and basically give them a clean slate – wiping out the losses they incurred due to bad loans and the amount of business lost due to demonetization. When banks make losses on bad investments, the government bails them out with our tax money, but when individual Indian citizens make losses on bad investments, we’re left to starve.
The government has, since this announcement, released around 75% of the Rs.22,915 crores (against the earmarked figure of Rs.25,000 crore) to 13 PSU banks for this fiscal year.
PSU Banks will receive Rs.25,000 crore of our tax money in the 2015-2016 fiscal.
PSU Banks will receive another Rs.25,000 crore of our tax money in the 2016-2017 fiscal.
PSU Banks will receive another Rs.10,000 crore of our tax money in the 2017-2018 fiscal
PSU Banks will receive another Rs.10,000 crore of our tax money in the 2018-2019 fiscal.
Finance Minister Arun Jaitley says that now is the time for some “out-of-the-box thinking” and that the banking sector is the “backbone” of the Indian economy. Defying his own suggestions, the finance minister has approved the diversion of literally thousands of crores of Rupees into banks – the simplest solution to the problem, as long as no one notices that the money could’ve been diverted into something vital for the survival of the starving thousands in India.