0:00

Think out of box

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley chairing the Pre-Budget Consultative Meeting with the Banks and Financial Institutions Group, in New Delhi on December 20, 2016. — *Jaitley chairing the Pre-Budget Consultative Meeting with the Banks and Financial Institutions Group, in New Delhi on December 20, 2016*.

#Finance Minister Arun Jaitley has told banks and financial institutions to think out of the box in supporting business in India.

“There is need for out of box thinking as series of steps are required about what the Government can do and what the banks can do,” said Jaitley at the Pre-Budget Consultative Meeting with Banks and Financial Institutions (FI) in New Delhi on Dec 20, 2016.

The banks and FIs responded with suggestions incuding:

The need for recapitalization of banks in the Current Financial Year 2016-17 as well as in the next Financial Year 2017-18. There is need for Full Tax Exemption for NPA provisioning by the banks keeping in view their profitability.

Post-demonetization, liquidity in banks have improved. This may impact saving deposit rates of the senior citizens. They called for exemption under the Income Tax Act so that the senior citizens have a decent income through their deposits.

Encourage low cost housing to kick start demand in the economy. Make available house financing based on plot/land ownership.

Incentivize Mutual Funds and Life Insurance Companies to provide employment to a large number of youths through their distribution network. fii-news.com