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

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

Press Trust of India  |  New Delhi 

Budget 2019: Liquidity support to banks does not rescue weak NBFCs
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Minister 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 minister further said that have decided to pass on RBI rate cut benefits to borrowers through MCLR reduction.

Sitharaman said that 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 will ensure mandated return of loan documents within 15 days of loan closure. "This will benefit borrowers who have mortgaged assets.

First Published: Fri, August 23 2019. 18:15 IST
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