NPAs can't be swept under the carpet any longer: PM Modi
New Delhi, Feb 26 Outlining reforms in the financial sector and taking a dig at the UPA government, Prime Minister Narendra Modi on Friday that non-performing assets (NPA) cannot be swept under the carpet now as a bad loan for even a single day needs to be reported.
Addressing a webinar on the Budget announcements for the Department of Financial Services (DFS), the Prime Minister said that reforms in the banking sector will continue.
"One after the other steps have been taken to pull the country out of the non-transparent credit culture. Now NPAs cannot be swept under the carpet, even an NPA for one day needs to be reported," he said.
Noting that old structures and norms of the banking and NBFCs are being changed, Modi said that everybody is aware of the losses caused to the financial sector in the name of "aggressive lending" around 10-12 years back.
Modi said that the government's vision is clear in terms of the financial sector.
"Our topmost priority is to ensure that every depositor and investor experiences trust and transparency," he added.
Addressing the webinar, he outlined the announcements related to the financial sector in the budget, ranging from privatisation of banks, LIC IPO and increasing the FDI limit in insurance sector.
Emphasising that the government's efforts are towards encouraging private players, Modi, said that the country, however, needs a significant public sector participation in the banking and insurance sectors.