Budget 2019-20
Budget 2019-20: Finance Minister Nirmala Sitharaman presented her first Union Budget in the Parliament on Friday (July 5). She is the first full time woman finance minister of India.
Prior to the announcement of Union Budget 2019-20, need was felt for capital infusion in public sector banks. The asset quality of of the banks had been deteriorating over time and banks needed capital for their lending operations. Half a dozen banks are already in the prompt corrective action (PCA) framework of the Reserve Bank of India (RBI). There were expectations that Reserve Bank of India's capital surplus will be transferred to the government in a staggered manner in next few years. It was expected that larger banks will be created by merging small banks just as it was announced in case of Dena Bank, Bank of Baroda and Vijaya Bank.
Here are the announcements Finance Minister Nirmala Sitharaman made about financial sector in Union Budget 2019:
- "NPAs have reduced by 1 lakh crore"
- "Reforms will be carried out in PSU banks"
- "Reserve Bank of India will regulate housing loans"
- "Boost of Rs 70,000 crores will be given to PSU banks"
- "Government will undertake the strategic sale of PSUs"
- "India's Sovereign external debt to GDP ratio is lowest in the world"
- "Number of public sector banks reduced by 8 through consolidation"
- "The government will provide one-time 6-month partial credit guarantee to PSU banks for purchase of pooled assets of Non-Banking Financial Corporations (NBFC)"
- "NBFCs that are fundamentally sound should continue to get funding from banks"
- "Pension Fund Regulatory Authority will be separated from National Pension Scheme Trust"
(more to follow)
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