Writing off does not mean waiving off amount: Sitharaman

The Finance Minister informed the House that as part of the accounting process, banks make a provision for the money which is due from the NPA account and in that process we call it as the writing off.

New Delhi: The writing off the NPAs does not translate to waiving off the amount, said Finance Minister Nirmala Sitharaman in response to a question by Sriperumbudur MP T.R. Baalu on Monday in the Lok Sabha during Question Hour.

The Finance Minister informed the House that as part of the accounting process, banks make a provision for the money which is due from the NPA account and in that process we call it as the writing off.

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Sitharaman added the pursuing of the defaulter is followed up. She apprised the Lower House that several public sector banks have got their money back by claiming assets and securities of the defaulter. “First time NPA are being pursued and actions are being taken on them”, she added.

“NPAs were previously left by the dozen and tons during UPA rule. Money was never obtained from these defaulters to go back to the banks,” she stated in the Lok Sabha.