In a now viral video from the Budget session in the Parliament, Union Finance Minister Nirmala Sitharaman and Aam Aadmi Party leader Raghav Chadha were seen engaging in a friendly banter, on Thursday.
The Finance Minister was responding to the AAP leader's deep concern over the poor customer service, limited banking infrastructure in Rural India, hidden charges by the banks, and other severe crises affecting the country's banking system.
“It feels like you've entered a building from the 80's or the 90's era when you step inside a government bank – the paint is falling off, fans work at their own whim, and the queues are longer than at a railway ticket counter,” AAP leader Raghav Chadha said during the Parliament session.
Watch here:
Nirmala Sitharaman's ‘amused’ response
The Finance Minister said that AAP leader Raghav Chadha's exposure to the western world would help people within the country.
“I was amused, sir, if Member Raghav Chadha does not take offense, he observed the number of fans in the bank, the condition of the bank, how many were whitewashed and not painted. I am really so, so satisfied. There are members of Parliament who are otherwise very busy with many things internationally,” Finance Minister Nirmala Sitharaman said.
“He has found time to visit rural banks and look at them, noticing there are no fans here, no doors, no chairs. Raghav Chadha, please do more of this. It will help people within the country because, with your exposure, particularly to the Western world, you can do a lot more here. Please do,” she added.
Watch here:
Raghav Chadha responds again
While AAP leader Raghav Chadha was seen smiling at the Finance Minister's response, he later said, “If only the Hon’ble FM had focused more on the state of Rural Banks, which are in shambles, instead of the classes I took at Harvard University,” with a smiley face emoticon at the end of his post on X.
What Raghav Chadha said on the banking system
During the discussion on the Banking Laws (Amendment) Bill, 2024 in the Rajya Sabha, Chadha questioned the central government's intentions, stating that the bill does not meet public expectations.
He criticised it as a bill focused only on procedural reforms, failing to address the real issues that citizens face daily and emphasised that banks are not just financial institutions but the foundation of democracy.
"From common people's savings to farmers' loans, from students' education to retirees' pensions - the banking system is deeply integrated into every citizen's life. However, growing banking fraud, loan recovery issues, and increasing pressure on employees have resulted in declining public trust in banks. Today, people are hesitant to trust banks with their money," he said.
On home loans and education loans
AAP leader Raghav Chadha pointed out that home loan rates in the country have surged to 8.5 per cent - 9 per cent, while education loans range from 8.5 per cent to 13 per cent.
"As a result, owning a home has become unaffordable for young individuals, and education is becoming excessively expensive, pushing students into debt before they even start earning. Additionally, MSME loan rates have reached 11 per cent, making it harder for small businesses to grow," he said.
He urged the government to set a maximum limit on education and home loan interest rates. First-time homebuyers should receive subsidised interest rates for affordable housing. He also suggested that the RBI should promote small and digital banks to help lower interest rates.
