FM emphasizes on Financial Services and Banking sector

Financial services and banking are major sectors, which drive India’s overall economy. The bad loans are a very dangerous situation with respect to dragging investors' wealth from quite a long period.

The Finance Minister introduced ‘A comprehensive Code’ on resolution of financial firms and further will be introduced as a Bill in the Parliament during 2016-17. This Code will provide a specialised resolution mechanism to deal with bankruptcy situations in banks, insurance companies and financial sector entities.

The government will support the banks for credit growth and has allocated Rs 25000 crore in the year 2016-17. If there will be shortage of recapitalisation for public sector banks then appropriate action will be taken in near term.

The Pradhan Mantri Mudra Yojana (PMMY) was launched for the benefit of bottom of the pyramid entrepreneurs. Banks and NBFC-MFIs have reported that the amount sanctioned under PMMY had reached about Rs.1 lakh crore to over 2.5 crore borrowers by early February this year. The cabinet is keen to provide better access to financial services, especially in rural areas. There will be a massive nationwide roll out of ATMs and icro ATMs in Post Offices over the next three years.

A Financial Data Management Centre under the guidance of the Financial Stability Development Council (FSDC) will be set up to facilitate integrated data aggregation and analysis in the financial sector. RBI will facilitate their participation in the primary and secondary markets through stock exchanges and access to NDS-OM trading platform. There will be new derivative products to be developed by SEBI in the Commodity Derivatives market.