The government currently has no proposals to waive student loans for students who had to return from war-torn Ukraine. However, in view of the fluid situation, the government has requested the Indian Banks’ Association to assess the impact of the dispute on the outstanding education loans of repatriated students and to initiate consultations with stakeholders to this regard, according to a government statement in the Lok Sabha today.
Responding to a question from the Lower House of Parliament, Finance Minister Nirmala Sitharaman said, “The current situation is fluid and the government is following developments closely. The implications of the ongoing conflict can only be assessed and corrective measures considered once the situation has stabilized.
“In the meantime, the government has decided to request the Association of Indian Banks to assess the impact of the dispute on the outstanding education loans of repatriated students and to engage in consultations with stakeholders in this regard” , she added.
As of December 31, 2021, 1,319 students had been granted a student loan to study in Ukraine with an outstanding balance of Rs 121.61 crore, according to information received from public sector banks and with respect to 21 banks private sector, Indian banks. Association, said the Minister of Finance in her written response.
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Citing data from the Ministry of External Affairs, FM Sitharaman said around 22,500 Indian nationals, mostly students, have safely returned from Ukraine to India since February 1, 2022.
The finance minister further said that the government has provided all possible assistance in terms of shelter, food and medical care, if needed, to displaced Indians who have crossed over to Ukraine’s western neighbours, and that they were eventually evacuated by flights operated as part of Operation Ganga.
Is there a plan for evaluating insurance companies?
Responding to another question on whether the government was considering rating insurance companies, the Minister of State in the Ministry of Finance, Dr Bhagwat Karad, said: “The Indian Regulatory and Development Authority des assurances (IRDAI) informed that currently no rating proposal based on the performance of health insurance funds is under study.