(a) whether public sector banks and financial institutions do not have any monitoring
system to ensure that the loans advanced to the borrowers are used for the very purpose for
which it is granted;
(b) if so, the reasons thereof; and
(c) the steps, the Government proposes to take to ensure proper monitoring of public
money advanced as loans by banks and financial institutions?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANDRAO VITHOBA ADSUL):
(a) No, Sir.
(b) Does not arise.
(c) Banks and Financial Institutions advance loans on the conditions that such loans
should be used for the very purpose for which they have been granted. Compliance of this
condition is ensured by constant supervision and monitoring of the account and periodical
inspections.