Facing temporary disruption in business due to demonetisation, state-owned banks have sought higher capital support from the Government. RBI too has endorsed their view of higher capital infusion, sources said.
In a pre-budget meeting of heads of banks and financial institutions with Finance Minister Arun Jaitley on Tuesday, the issue of higher capital infusion came up for discussion, they said. Under the Indradhanush roadmap announced last year, the Government will infuse Rs 25,000 crore in PSU banks during the current fiscal. Government in July had announced the Ist round of capital infusion of Rs 22,915 crore for 13 PSU banks.