How much loans Modi Government write off so far?

The Reserve Bank of India (RBI) has disclosed a significant financial development in response to a Right to Information (RTI) application filed by Surat-based social activist Sanjay Ezhawa.

The revelation pertains to the BJP-led NDA government, which, during its nine-year tenure under Prime Minister Narendra Modi, has written off an astounding Rs 25 lakh crore worth of loans. This disclosure has sparked nationwide debates and discussions.

The NDA government, comprising NDA Government-1 and NDA Government-2, was in power for nine years from 2014-2015 to 2022-2023. During this period, they sanctioned the write-off of Rs 10.41 lakh crore through public banks across India and an additional Rs 14.53 lakh crore through Scheduled Commercial banks. The total sum of these loans amounts to a staggering Rs 24.95 lakh crore.

This massive sum has sent ripples through India’s economic landscape, raising significant questions and concerns. It’s worth noting that the RBI’s disclosure only includes statistical data, and the identities of the defaulters have not been disclosed.

Nonetheless, it represents the largest loan write-off amount ever revealed in India’s financial history. The amount written off by NDA-1 and NDA-2 is approximately 810% higher than the sum written off during the combined tenure of UPA Government-1 and UPA Government-2.

How much of loans did Modi govt. write-off?

• Public banks and scheduled commercial banks have written off a total of Rs. 25 trillion from 2014 to the present.

• This figure is a staggering 810% higher than the combined total of UPA1 and UPA2.

• The majority of the loans written off are of larger amounts.

• Nearly 4000 accounts with loans exceeding Rs. 5 crore have been written off.

• The recovery rate stands at a mere 10%, equating to Rs. 2.5 trillion.

So, while the common man continues to pay minimum balance charges, the big players are absconding with large sums, and the Government of India and RBI seem to be silent spectators.

Massive loan write-offs benefit big capitalists

The UPA Governments wrote off an annual average of Rs 34,192 crore during their 11-year tenure, whereas the NDA Government-1 and NDA Government-2 together wrote off an average of Rs 2.77 lakh crore per annum. Essentially, the amount written off by the UPA government in 11 years equals the amount written off by the NDA government in just 17 months.

The massive Rs 25 lakh crore write-off disproportionately affects common citizens and farmers who have taken relatively smaller loans. The major beneficiaries of this write-off are the big capitalists who borrowed substantial amounts and then fled the country.

The Central Repository of Information on Large Credits (CRILC), established by the Reserve Bank of India, collects, stores, and disseminates credit data to lenders. As of June 2023, CRILC reported that Scheduled Commercial Banks have written off 3,973 accounts with loans exceeding Rs.5 crore. This staggering number underscores the scale of the problem.

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