Banks ask govt to continue capital infusion

Economists said fiscal deficit should remain at 3% and govt should not deviate from fiscal roadmap

Banks suggested the government continue capital infusion next year, provide full tax exemption towards provisions for non-performing assets and reduce tax rates for companies increasing employment.

They suggested Banking Correspondents transactions should be exempted from service tax. Banks said there is an urgent need for special efforts for digitisation of Primary Agriculture Cooperative Societies, Regional Rural Banks and Co-Operative Banks to promote digital transactions.

Bankers also suggested a Krishi Udyam Nidhi be created to help startups and to boost IT applications in agriculture; Nabard needs recapitalisation worth Rs 2,500 crore. They said Finance Bill should mandate that all wages should be paid via banking channels or digital mode and Urban Local Bodies should be encouraged to collect Property Tax online, reported The Indian Express.

Economists said fiscal deficit should remain at three per cent and the government should not deviate from the fiscal roadmap.