MPs cannot be allowed to monitor bank lending: Pranab
12 Dec 2009
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The government on Friday shot down a suggestion in the Lok Sabha that Members of Parliament should be authorised to monitor disbursement of loans by banks to priority sector like agriculture and small and medium enterprises.
Jagdish Sharma (JD-U) had asked whether the government would consider forming committees under the chairmanship of the local MP to monitor disbursement of loans in his or her constituency.
"My response is no. We cannot allow commercial activities of banks to be supervised by the representatives of the people," finance minister Pranab Mukherjee said in reply during Question Hour.
Mukherjee added that many years ago, the issue was debated and a committee was appointed under the chairmanship of V K Krishna Menon to examine it. "At that point of time the public sector was coming up, and so it was suggested that a committee of Parliament represented by the Committee on Public Undertakings could look into the functioning of the public sector. But individual banks or their transactions cannot be allowed to be looked into by the MPs or by any extraneous elements," he said.
Replying to another remark by a member that bank managers do not listen to the suggestions by them, the minister assured the house that such cases would be looked into. "Surely I will issue instruction, it is expected that the MPs should be extended due courtesy. But at the same time I will request the MPs to avoid advocacy of individual loans. This is not their job," Mukherjee added.
Jagdish Sharma (JD-U) had asked whether the government would consider forming committees under the chairmanship of the local MP to monitor disbursement of loans in his or her constituency.
"My response is no. We cannot allow commercial activities of banks to be supervised by the representatives of the people," finance minister Pranab Mukherjee said in reply during Question Hour.
Mukherjee added that many years ago, the issue was debated and a committee was appointed under the chairmanship of V K Krishna Menon to examine it. "At that point of time the public sector was coming up, and so it was suggested that a committee of Parliament represented by the Committee on Public Undertakings could look into the functioning of the public sector. But individual banks or their transactions cannot be allowed to be looked into by the MPs or by any extraneous elements," he said.
Replying to another remark by a member that bank managers do not listen to the suggestions by them, the minister assured the house that such cases would be looked into. "Surely I will issue instruction, it is expected that the MPs should be extended due courtesy. But at the same time I will request the MPs to avoid advocacy of individual loans. This is not their job," Mukherjee added.
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