Finance Minister says need to simplify refund process for depositors

New Delhi, Dec 20:Finance Minister Nirmala Sitharaman on Monday accepted, in the Parliament that the process of recovering money by small depositors from bad debts is very complicated and lengthy, and there is a need to simplify it.

Replying to a question by NCP member Supriya Sule during Question Hour in tnhe Lok Sabha on writing off of bad loans and their recovery and problems faced by depositors, Sitharaman said: “Unfortunately, the processes (of recovering money) are so layered that by the time justice is sought to be delivered, many of the small depositors are put to extreme difficulty. There is definitely a need to look at how we can simplify the process without denying justice.”

Sule had sought to know how the process of facilitating refund of depositors’ money can be shortened, as it takes a long time for depositors to get their money back once bad loans are written off.

The NCP lawmaker also cited the example of PMC Bank case while highlighting the plight of the common depositors through her question.

In her reply, Sitharaman said: “I quite understand the sentiment… and I am fully appreciative of that part. It does take a long time. The processes are very layered… Financial creditors and operational creditors are very much at the bottom. These claims are probably never heard. It should rightly be heard also.

“When there are these many claims on, let us say, a property of a so-called wilful defaulter, approaching the court for release of a portion of what was attached becomes difficult… I agree with the honourable MP that unfortunately the processes are so layered that by the time justice is sought to be delivered, many of the small depositors are put to extreme difficulty. There is definitely a need to look at how we can simplify the process without denying justice.”