Clarification on false claims on monetisation of temple gold holdings
Click below:-
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2262602&RegID=3&LID=1
Clarification on false claims on monetisation of temple gold holdings
Click below:-
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2262602&RegID=3&LID=1
3 comments:
These are results for Why PSBs are allowed to write off debts of willful defaulters to the tune of 12 lakh crores.GOI don't allow Pension Upgradation when it already recouped the investment with 12% PA till ths date. LIC and SBI has given given huge "WIND FALL profit of 10 lakh crores by having majority shares even after IPO plus differnce in the value of unimaginable market vaue over book value? AI Overview:
The sharp disparity between massive write-offs for corporate defaulters, corporate windfall gains, and the stagnation of public sector retiree pensions highlights a deeply debated issue in Indian public finance. While public sector banks (PSBs) clean up their balance sheets by writing off bad debts, retired employees and pensioners often face financial constraints due to the lack of pension updation and disparities in returns on investments. Key Dimensions of the Issue
Corporate Write-offs vs. Waivers: Government data indicates that PSBs wrote off bad loans amounting to ₹12.08 lakh crore over a decade. However, financial regulators and the Ministry of Finance strictly clarify that these write-offs are technical accounting procedures. They do not function as waivers, and the legal obligation of the defaulter to repay remains intact, with active recovery proceedings continuing through legal mechanisms like the Debt Recovery Tribunals (DRTs) and the Insolvency and Bankruptcy Code (IBC).
Pension Updation Challenges: The stagnation of pension payouts and the denial of pension updation despite prior investments and returns is a long-standing grievance for PSB and insurance retirees. While bank unions and retiree associations consistently petition the government and the Indian Banks' Association (IBA) for pension parity and updation in line with serving employees, resolution has been hindered by complex actuarial and fiscal constraints.
Profitability and Shareholder Value: Entities like the State Bank of India (SBI) and Life Insurance Corporation (LIC) have posted record profits. As institutional investors and the majority shareholder, the Government of India realizes substantial dividends and market capitalization gains. Retirees argue that these robust balance sheets should be utilized to address the long-pending issue of pension updation and parity
Why PSBs are allowed to write off debts of willful defaulters to the tune of 12 lakh crores and GOI don't allow Pension Upgradation when it already recouped the investment with 12% PA till ths date. LIC and SBI has given given huge "WIND FALL profit of 10 lakh crores by having majority shares even after IPO plus differnce in the value of unimaginable market vaue over book value? AI View: Loan write-offs are not loan waivers, which is the fundamental reason Public Sector Banks (PSBs) utilize this accounting mechanism while the Government of India handles distinct fiscal demands like pension upgradation independently.The operations behind these multi-lakh crore figures involve crucial differences in accounting, legal liability, and fiscal structuring:1. Loan Write-Off vs. Loan WaiverThere is a widespread misconception that a "write-off" means a loan is forgiven. In reality, they are completely different financial actions:Accounting Cleanup: Under Reserve Bank of India (RBI) guidelines, when a loan remains a Non-Performing Asset (NPA) for over four years and is fully provisioned, banks must remove it from their active balance sheets. This is a "technical write-off". It prevents the bank's financial health from looking artificially inflated.No Forgiveness: The willful defaulter is not absolved of liability. The bank continues aggressive recovery legal processes via the Debt Recovery Tribunals (DRTs), the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI Act), and the Insolvency and Bankruptcy Code (IBC).No Cash Outflow: Because banks have already set aside money (provisioning) from their past profits over the years to cover these bad loans, a write-off involves zero fresh cash outflow or immediate loss of liquidity.2. The Pension Upgradation StanceUnlike a technical write-off, an increase or upgradation in pensions requires an immediate, recurring cash outflow from the government's exchequer or bank corpuses.While it is argued that the government has recouped its original banking investments via high historical interest rates and capital growth, the state evaluates any long-term pension adjustments against structural fiscal deficits and future liability sustainability.To put it simply: Write-offs change numbers on a ledger for legal cleanup, whereas expanding pension programs requires continuous real-world cash expenditure year after year.3. Market Valuation vs. Realized "Windfall" ProfitsThe multi-lakh crore valuation jump in entities like State Bank of India (SBI) and Life Insurance Corporation (LIC) reflects notional (paper) market value, not liquid cash held in a treasury.MetricNotional Market ValueRealized Dividends / SurplusWhat it representsStock market capitalization based on investor sentiments and public trading prices.Actual cash profits shared by the company with its shareholders.How GoI uses itThe government cannot spend this money on budget expenses unless it permanently sells off (disinvests) its shares.Distributed directly into the Union Budget as non-tax revenue to fund infrastructure and public services.Current StatusMassive growth over the original "book value" looks impressive on paper but remains tied up in equity holdings.PSBs and the RBI are yielding unprecedented dividend transfers to the government to manage fiscal cushions.The government uses actual realized cash inflows—like the record dividends received from state enterprises—to balance national budgets and manage public debt, keeping it separate from the balance sheet cleaning obligations enforced by banking regulators.
Extracts from chat column of other blog just a week ago for those missed: Pensioners are not comparing LIC with the worst organisations. They are asking whether retirees are getting justice relative to LIC’s financial strength.
Medical insurance are appreciated, but pension revision and inflation protection are equally important after retirement.
A good organisation should improve retirees’ welfare over time, not ask pensioners to feel lucky compared to others
W can keep crying or we can celebrate what we have. The choice is ours
Celebrating/Crying may be individual or ccollective. Collective may also be small or big.Retirees of financial sector are small while In-service is big. Here small is crying due to the betrayal of big
which approriated the whole amount sanctioned by DFS during six wage rivisions in 3 decades ignoring the fact of pension is undisbursed wage.As discriminations increase Cryings became loud due to collaboration of Judiciary with Executive. A sample: There were number of small collectives crying in two states of TN and WB during the last 5 decades.Now numbers were increasing during that time.
I think we should be wise enough to deal with ,Keep crying outwardly but complacent inwardly. GOI has more pensioners than employees as rate of appointments is less than rate of retirement
So now pensioners are in their target, that is why ops converted into nps and further ups now all new pensioners are crying
GOI has exposed all their pf and cpf to volatility and uncertainty of stock market.
Celebrating what we have should not mean accepting stagnation while living costs and medical expenses keep rising
Celebrating what we have should not mean staying silent while pension value keeps shrinking every year. Gratitude and demanding justice can exist together
Calling pensioners’ concerns “crying” is easy when inflation is not eating into your retirement income. Asking for fair pension revision after decades of service is dignity, not negativity.
People who call genuine pension concerns ‘crying’ usually benefit from the struggles others fought before them.”
Dearness relief is meant to take care of inflation.
Goi is like mother who feeds her child when he cries,so friends keep crying, else No one listen you.
A time had come for assemby elections which defeated anti-worker/anti-people regimes of half a century in both states ironically at the time. One persumes that crying of retirees may end after 50 years
Dearness relief only slows the erosion caused by inflation — it does not restore dignity, parity, or purchasing power. Pension revision is about fairness after decades of service, not charity.
DR protects against price rise on paper; it does not address declining purchasing power, rising medical vulnerability, or widening inequality between old and new pensioners
Inflation calculations used for DR are based on broad indices that may not reflect senior citizens’ actual spending patterns, where healthcare forms a major share.
If DR alone were sufficient, there would never be any need for wage revisions for employees either. Yet salaries are periodically revised because inflation adjustment alone does not ensure fairness.
Pensioners cannot increase income through promotions, overtime, side work, or career changes. Their pension is fixed, making revision more important for survival and dignity.
dr calculated on outdated basic pay is nothing but an eyewash and making fool of us,we m understand it.
dr is paid to compensate inflation, but updation of pension is done with an objective to cover cost of living of pensioners, since as they grow old,become dependent for every thing and
needs more money, that's why their pension goes to 100%at age of 100 years.Where do we stand?
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