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How FM Jaitley is planning to revive the crippled banking sector

Said encouraging private investment and improving lending capacity of banks are the two challenges govt faces

Agencies  |  Mumbai 

Chairman of Indian Banks' Association Rajeev Rishi and Arun Jaitley at the IBA 70th AGM in Mumbai. Photo: Kamlesh Pednekar
Chairman of Indian Banks' Association Rajeev Rishi and Arun Jaitley at the IBA 70th AGM in Mumbai. Photo: Kamlesh Pednekar

Addressing the problem of debt-laden as a core “concern” for the economy, Finance Minister Arun on Friday pledged to find resources to ease off  

Jaitley, on the sidelines of the 70th Annual General Meeting (AGM) of Indian Bank Association (IBA), said the two major challenges that the Indian government faces are — encouraging private investment and improving the lending capacity of

The finance minister stressed that bad loans have crippled the ability of to offer new credit and a push must be given to revive the sector.

He said that the government had amended laws to bring a speedy resolution of the bad debts of banks, including and Bankruptcy Code, 2016.

“India's ability to face challenges in the economy is much better, higher than what it traditionally has been," IANS reported. Further, he said that government stands with the banking system and will take “whatever steps are required to strengthen the banking system.”

created a new normal

Crediting the banking system for efficiently carrying out operations during followed by the remonetisation process, he said that the with the constraint of time dealt with the large inflow of cash and distribution of new currency.

"There was a conscious effort being made to alter both the behaviour and spending pattern of society. A new normal was sought to being created,” told PTI.

said that created a new normal wherein cash transactions have been visibly reduced and tax base has expanded.

smoother than expected

He said that the new mechanism of indirect taxes — goods and services tax (GST) — was going smoother than expected and more people are likely to come under the taxation net.

said: "These are early days of implementation of the alternate taxation system. So far it is going smoother than expected. The decision-making mechanism on top has been reasonably institutionalised. The mechanism to issue day to day issues has been created and is robust,” reported IANS.

"The number of people coming to the new tax network is likely to gradually expand," he added.

GST, which brings the economy under the umbrella of a uniform tax regime, was implemented from July 1, 2017. 

India’s growing at snail’s pace

India's grew slower at 5.7 per cent during April-June — the lowest in three years of the Modi government while lagging China for the second straight quarter — as manufacturing slowed ahead of the launch and note ban impact lingered. 

had recently attributed the lower numbers to pre-de-stocking of goods and expressed hope that the economy will grow at 7 per cent, saying manufacturing has bottomed out. 

First Published: Fri, September 22 2017. 15:50 IST