The Union Minister of Finance and Corporate Affairs, Arun Jaitley said that in order to strengthen the banks, which are the key pillars of the economy, the Central Government has decided to take a massive step to recapitalize the Public Sector Banks (PSBs) in a front-loaded manner.
The Government has decided to infuse capital worth Rs.2.11 lakh crore in PSBs in next two years through budgetary provisions of Rs.18,139 crore, and Rs. 1,35,000 crore through Re-capitalisation Bonds, and the balance through raising of capital by banks from the market.
Stakeholders representing the Banking and Financial Institutions who attended meeting included N.S. Vishwanathan, Deputy Governor, Reserve Bank of India, Jatinder Bir Singh, Chairman Indian Banks Association, Rajnish Kumar, Chairman SBI, Ashwani Kumar, Chairman & Managing Director, Dena Bank, Chanda Kochhar, MD & CEO, ICICI, Rajeev Rishi, CMD, Central Bank of India, Mahesh Kumar Jain, MD &CEO, IDBI Bank Ltd., H K Bhanwala, Chairman, NABARD, Sunil Kakar, MD & CEO, IDFC Limited Ms. Sunita Sharma, Managing Director, LIC of India, Shikha Sharma, MD&CEO, AXIS Bank, Shri Aditya Puri, Managing Director, HDFC Bank Ltd., Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank, Adhil Shetty, CEO, Bank Bazaar, M.G. George Muthoot, Chairman,The Muthoot Group, N. S. Venkatesh, Chief Executive, Association of Mutual Funds in India (AMFI), Shri Raman Aggarwal, Chairman, Finance Industry Development Council (FIDC), Milind Kamble, Chairman, Dalit Indian Chamber of Commerce and Industry (DICCI), Yashish Dahiya, CEO, Policybazaar, Uday Kotak, Vice Chairman & MD, Kotak Mahindra Bank, Rashesh Shah, Chairman & CEO, Edelweiss Group, and Vijay Mahajan, Chairman Basix- Microfinance among others.
Various suggestions were given by the representatives of the Banking and Financial Institutions. It was suggested that TDS limit for Bank interest should be raised from the current Rs.10,000/- especially for senior citizens and pensioners given the current scenario. The limit of Rs.10,000/- was last set in the year 1997. It was also suggested to have a Credit Guarantee Fund to encourage investment in Agriculture Sector.