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Govt to upfront infuse Rs 70,000-crore capital into public sector banks

Nirmala Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.

By: PTI | New Delhi |
August 23, 2019 6:43:18 pm
indian economy, indian economy growth, nirmala sitharaman, finance minister nirmala sitharaman, nirmala sitharaman press conference, niti aayog, rajiv kumar niti aayog, rajiv kumar on indian economy, economy slowdown, Indian Express “Working capital loans for the industry will also become cheaper,” the minister said.  (Express Photo: Prem Nath Pandey)

Finance Minister Nirmala Sitharaman on Thursday announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation.

The move is expected to generate an additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore, she said at a press conference.

The finance minister further said that banks have decided to pass on RBI rate cut benefits to borrowers through MCLR reduction.

Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.

“Working capital loans for the industry will also become cheaper,” the minister said.

Sitharaman said that to reduce harassment and bring in greater efficiency, public sector banks will ensure mandated return of loan documents within 15 days of loan closure. “This will benefit borrowers who have mortgaged assets.”

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