As the Finance Ministry announced a bouquet of measures to give a fillip to the economy, Nirmala Sitharaman Friday said 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.
While addressing a press conference, Sitharaman attempted to allay concerns on the state of the economy. She said that banks will pass on RBI rate cut benefits to borrowers through MCLR reduction.
Among the key measures that were announced include treating CSR violations as a civil liability and not as a criminal offence, rollback of enhanced surcharge on foreign portfolio investors, and the withdrawal of Angel tax provisions for startups and their investors.
Sitharaman asserted that reforms continue to be on the top of the union government’s agenda and assured that the reform process continues to be unfolded without any loss of momentum. Sitharaman further announced that the government will also infuse upfront Rs 70,000 crores into public sector banks to enable the release of Rs 5 lakh crore liquidity in the market.
Explaining the reasons behind the country’s slowing economy, Sitharaman said that as a result of US-China trade war and currency devaluation, a very volatile situation has developed in global trade.