News Bureau

Bank are lending in India well!

Government of India (GoI) announced recapitalisation of Public Sector Banks (PSBs) to the tune of Rs. 2.11 lakh crore in October 2017, through infusion of capital by the Government and raising of capital by banks from the markets.

Rs. 88,139 crore was infused by the Government in PSBs during financial year (FY) 2017-18 after the recapitalisation announcement and provision of Rs. 65,000 crore has been made in the budget for the current financial year for infusion. Since the recapitalisation announcement till November 2018, PSBs have been recapitalised to the tune of Rs. 1, 28,861 crore through infusions and mobilisation of capital from the market.

The benefits that have accrued to customers include, increasing access to banking services from home and mobile through digital banking and enhanced customer ease!

Unprecedented financial inclusion, Jan Dhan programme by the Government has enabled opening of bank accounts for millions of previously unbanked customer (about 33.46 crore such accounts have been set up as of 5.12.2018, with balance of about Rs. 84,800 crore) and allowing users to receive government subsidies and to access remittances, credit, insurance, and essentially being included financially, increased availability of loans upto Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises under Pradhan Mantri MUDRA Yojana (PMMY).

Increasing lending to MSMEs through time-bound automated processing and transparent status-tracking, with financially and technologically strengthened banks leveraging digitalised bank statements and income-tax and GST returns and according in-principle loan sanction within59 minutes, and meet the production credit requirements of the farmers in a timely and hassle-free manner by introducing Rupay Kisan Credit Card.

India’s global-rank for getting credit as per World Bank’s Ease of Doing Business Index has improved from 44 in 2016 to 22 in 2018.

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