Announcing upfront capital infusion of Rs 70,000 crore into public sector banks, Finance Minister Nirmala Sitharaman Friday said the move is expected to generate additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore.
The finance minister announced the move during a press conference and said it aims at boosting lending and improving liquidity situation.
The move is expected to generate additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore, Nirmala Sitharaman said at a press conference.
The finance minister further said that banks have decided to pass on RBI rate cut benefits to borrowers through MCLR reduction.
Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly instalments 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 banks will ensure mandated return of loan documents within 15 days of loan closure. "This will benefit borrowers who have mortgaged assets."
Also Read | BS IV vehicles purchased till March 2020 valid for period of registration, says Sitharaman
Also Read | Big relief for markets as Nirmala Sitharaman rolls back tax surcharge on FPIs
Watch Finance Minister Nirmala Sitharaman's full press conference
Latest Business News
