You are here: Home » Government Press Release » News
Business Standard

A record one Lakh Crore Rupees expected to be generated through disinvestment during the period 2017-18 Bank Recapitalization program will enable public sector banks to lend additional rupees 5 Lakh Crore

Delhi 

A record one Lakh Crore Rupees expected to be generated through disinvestment during the period 2017-18

Recapitalization program will enable public sector banks to lend additional rupees 5 Lakh Crore

The Government has initiated efforts to generate funds as well as undertake banking sector reforms. The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitely, while presenting the General Budget 2018-19 in Parliament here today said that the Government has initiated the process of strategic disinvestment in 24 CPSEs including strategic privatization of Air India.

Highlighting the Governments effort to generate funds, the Finance Minister said that the Exchange Traded Fund Bharat-22 which was introduced to raise Rs. 14,500 Crore, was over-subscribed in all segments. Similarly, the 2017-18 Budget Estimates for disinvestment were pegged at the highest ever level of Rs.72,500 Crore and the estimated receipts from the same are expected to the tune of Rs.1,00,000 crore in 2017-18, far exceeding the target. The Finance Minister has also set the disinvestment target of Rs.80,000 crore for 2018-19.

Making his Budget Speech, the Finance Minister said that recapitalization program has been launched with bonds of Rs.80,000 crore being issued this year. This recapitalization will pave the way for the Public Sector Banks to lend additional credit of Rs.5 lakh crore. It is proposed to allow strong Regional Rural Banks to raise capital from the market to enable them to increase their credit to rural economy.

National Housing Act is being amended to transfer its equity from the Reserve (RBI) to the Government. Indian Post Offices Act, Provident Fund Act and National Saving Certificate Act are being amalgamated and certain additional people friendly measures are being introduced. To provide the Reserve an instrument to manage excess liquidity, Reserve Act is being amended to institutionalize an Uncollateralized Deposit Facility. Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act 1956, and Depositories Act 1996, are being amended to streamline adjudication procedures and to provide for penalties for certain infractions.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 01 2018. 00:20 IST