Banks must help poor get rid of poisonous debt trap: PM

Prime Minister Narendra Modi today said that it is the duty of banks to ensure that poor people paying five times more interest than affluent businessmen come out of the poisonous debt trap.
"It is easy for the rich to get a loan at low interest rates. But the poor are forced to seek loans from money-lenders at five times the rate charged to the rich. Is it not the responsibility of the banking industry to provide banking access to the poor," Modi said while launching 'Jan Dhan Yojana'.
Modi said the day poor starts borrowing from money lenders, exploitation begins in his life.

"He (poor) can never come out of the trap and the debt ridden person is forced to commit suicide. Does such a big financial system not has a responsibility to get poor rid of this poisonous trap. Today I am celebrating the freedom of poor from this poisonous death trap," the Prime Minister added.
He also said a breakthrough was required to overcome the vicious cycle of poverty and debt.
Modi said there were similarities between the poor getting access to mobile telephones and getting access to debit cards.

"They both had the effect of instilling confidence and pride among the poor," he added.

Further he said that 99 per cent of the poor repay loans on time and the repay ratio is 100 per cent when it comes to women.
"But the rich people, you know what happens. And for this, the whole programme is for the poor, to help them get rid of poverty and this is why it is being taken forward," he added.