Nirmala Sitharaman rebuked Akhilesh Yadav after he raised 12 questions about banking reforms. Their exchange has widened the IDBI Bank sale dispute into a broader political battle.
Akhilesh-Sitharaman face-off intensifies as SP chief raises 12 questions on banking
The political face-off between Samajwadi Party chief Akhilesh Yadav and Union Finance Minister Nirmala Sitharaman over banking reforms escalated for a second day on Thursday, with Sitharaman accusing the SP leader of anticipating electoral defeat after he raised 12 questions about the banking sector under the BJP-led government.
In a post on X, Sitharaman alleged that Yadav had abandoned ground-level issues and resorted to what she described as “absurd and fact-free rhetoric” because he feared a crushing defeat in the upcoming elections.
“Akhilesh ji, facing the prospect of electoral defeat, you have resorted to such absurd and fact-free rhetoric,” she wrote, accusing him of staging a political exercise to divert public attention.
Sitharaman defended the Narendra Modi government's record, claiming that it had transformed the banking sector after the Congress-led United Progressive Alliance (UPA) government weakened it through what the BJP calls “phone banking”.
“There is no doubt about it that under @narendramodi ji's government, the banks have undergone a complete transformation. They have been given a new lease on life,” she said, adding that financial inclusion had been achieved under the current dispensation.
The Finance Minister also invoked the Samajwadi Party's record in Uttar Pradesh, alleging that people had not forgotten the party's “misgovernance, corruption, and reign of goons” between 2012 and 2017.
AKHILESH RAISES 12 QUESTIONS ON BANKING
Sitharaman's response came after Yadav posted a list of 12 questions on X, challenging the BJP government's claims of banking reforms since 2014 and alleging that ordinary customers continued to face financial hardship.
“Has the BJP made banking even worse than usury?” the SP chief asked, accusing the government of failing to address problems affecting bank customers, pensioners, small borrowers and employees.
Among the issues raised by Yadav were penalties deducted from customers' accounts, rising service charges, lower interest rates on savings, loan waivers for wealthy borrowers and the difficulties faced by ordinary people seeking loans.
He also questioned the impact of demonetisation on the banking system, alleged irregularities involving bank lockers and their charges, and flagged repeated Know Your Customer (KYC) requirements that he said created difficulties for elderly customers and pensioners.
Yadav further criticised digital banking services, alleging that customers often struggled to reach customer care representatives or obtain refunds for unauthorised deductions and banking fraud. He also questioned the alleged pressure on customers to purchase insurance policies and credit cards while opening bank accounts.
The SP chief raised concerns about working conditions for bank employees, loan recovery practices and the treatment of people holding zero-balance Jan Dhan accounts. He alleged that penalties had pushed some poor customers' accounts into negative balances.
Taking a swipe at the government's financial inclusion messaging, Yadav said the slogan “Your account, the fate-maker” should instead be changed to “Your account, the loss-giver”.
He challenged the BJP government to answer the 12 questions, arguing that doing so would open the door to further scrutiny of what he described as an ailing banking system.
IDBI BANK SALE SPARKED THE POLITICAL EXCHANGE
The latest exchange follows a dispute over the Union Cabinet's approval of the proposed sale of a combined 60.72 per cent stake in IDBI Bank to Fairfax Financial Holdings, led by Canadian billionaire Prem Watsa.
Yadav had criticised the proposed Rs 52,878-crore transaction, accusing the BJP-led government of putting public assets up for sale as its tenure approached its end.
In response, Sitharaman had questioned the Samajwadi Party's record during the UPA government, which it supported from 2004. She accused the previous government of weakening public sector banks through “phone banking” and crony capitalism.
The Cabinet Committee on Economic Affairs approved Fairfax subsidiary 10955230 Canada Inc as the strategic buyer for the government's 30.48 per cent stake and Life Insurance Corporation of India's 30.24 per cent stake in IDBI Bank.
Fairfax is set to pay Rs 81 per share, valuing the transaction at Rs 52,878 crore. The proposed sale would transfer control of the lender to Fairfax, subject to regulatory approvals and completion of the transaction.
The government has described the deal as the largest foreign direct investment in India's financial sector to date. The transaction remains subject to approvals from the Reserve Bank of India, the Competition Commission of India and other statutory authorities.
With Yadav questioning the government's banking policies and Sitharaman defending its reform record, the dispute has widened from the proposed IDBI Bank sale to a broader political contest over financial inclusion, customer charges, loan practices and the legacy of successive governments.
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