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Nirmala Sitharaman meets bankers for pre-budget consultations today loans on agenda

The agenda of the meeting is expected to be based on the need to tell lenders to facilitate the flow of credit to micro, small and medium-sized enterprises (SMEs) and small borrowers.

Nirmala Sitharaman meets bankers for pre-budget consultations today loans on agenda
Photo of the file from the finance minister Nirmala Sitharaman.

New Delhi: As part of pre-budget consultations, Union Finance Minister Nirmala Sitharaman will meet bankers on Thursday, including officials from the Reserve Bank of India (RBI) and other financial institutions.

The agenda of the meeting is expected to address the need to tell lenders that they need to ease the flow of credit to micro, small and medium-sized enterprises (SMEs) and small borrowers and that a revised RBI circular must come to do loan repayment business.

The meeting between bankers and financial services institutions is expected to become more prominent after the RBI circular on the management of non-performing assets (NPAs) due to insolvency.

Sitharaman is expected to discuss ways to improve the financial health of state-owned banks, improve their positions in non-performing assets, and improve lending to priority sectors such as micro-enterprises and agriculture, sources said.

Sources said the FM could remind PSU lenders of the transfer of RBI rate cuts to the benefit of common borrowers.

Insurance companies are also part of the pre-budget meeting, where they are likely to seek fund infusion.

The Department of Financial Services can propose fund infusion at three insurance companies, namely National Insurance Company, Oriental Insurance Company and United India Insurance Company.

Banks and insurance companies are likely to seek tax breaks for their products in the budget.

With a view to lending to the infrastructure sector, bankers are likely to pitch for the need to support infrastructure financing and demand tax-free bonds for this sector.

. (tagsToTranslate) Minister of Finance (t) MSME (t) Nirmala Sitharaman (t) non-performing assets (t) npa (t) rbi (t) Reserve bank of India (t) trade union budget 2019

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