Cong calls for banking reforms to ensure credit access for Nagaland, NE

National coordinator of the AICC minority department, Rajesh Kumar Sethi, has expressed deep concern over the Rs. 16.35 lakh crore in bad loans written off by Indian banks over the past decade, with the major beneficiaries being large corporate houses.

Sethi criticized the disparity in access to credit, stating that while corporate giants easily secure and default on massive loans, ordinary citizens, small businesses, and farmers—particularly in Nagaland—struggle to get financial support. He pointed out that loans worth Rs. 1,000 crore or more, totaling Rs. 61,027 crore, were waived off, while middle-class families and small entrepreneurs face endless hurdles in securing even basic credit.

During the 5th National Conclave of the All India Professionals’ Congress (AIPC) in Raipur (2022), Sethi said he raised the issue with former RBI Governor Raghuram Rajan, who acknowledged systemic imbalances in the banking sector. Rajan had advocated for financial inclusion and accountability in loan recovery, stressing that India’s economy cannot grow by favoring corporate defaulters while neglecting small borrowers.

He said that Congress leader Rahul Gandhi and AICC minority department chairman Imran Pratapgarhi have also condemned the bias in the banking system, calling for urgent reforms to ensure fair credit access for small businesses, farmers, and homebuyers, especially in Nagaland and the Northeast.

Sethi reiterated that financial empowerment must reach every corner of Nagaland and the Northeast, not just corporate boardrooms. He demanded urgent banking reforms to ease credit access, ensuring that banks prioritize local businesses, farmers, and youth over corporate defaulters.