Union Budget proposals for the year 2019-20 laid down the vision to achieve $5 trillion economy in the next few years. The emphasis were on investing in infrastructure, digital economy and job creation in small and medium enterprises apart from Government programs like Swachh Bharat, Make in India, Stand up India, etc. For the banking and financial sector, Union Budget focused on infusing Rs 70,000 crore capital into Public Sector Banks to boost credit. To further improve ease of living, PSBs will leverage technology, offering online personal loans and doorstep banking, and enabling customers of one Public Sector Bank to access services across all Public Sector Banks.
To encourage PSBs to lend to NBFCs, Government’s guarantee provision to PSU banks for purchase of high rated pooled assets of financially sound NBFCs has been announced. This will improve the “trust” factor and confidence in both segments. Budget has also proposed to initiate steps to account holders to have control over deposits of cash by others in their account.