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Banks - Financial institutions meet Fin Min Jaitley ahead of Budget 2018-19

Updated: Dec 16, 2017 05:48:11am
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Banks - Financial institutions meet Fin Min Jaitley ahead of Budget 2018-19

New Delhi, Dec 16 (KNN) As a part of the ongoing rounds of consultation meetings, Finance Minister Arun Jaitley recently held talks with representatives from banks and financial institutions ahead of the upcoming budget.

The Finance Ministry in a release informed about the meeting.

During the meeting the participating representatives suggested the government to consider TDS limit for Bank interest to  be raised from the current Rs.10,000 especially for senior citizens and pensioners. The limit of Rs.10,000 was last set in the 1997.

Also formation of a Credit Guarantee Fund to encourage investment in Agriculture Sector was suggested by the bankers.  With regard to life insurance, It was suggested that premium up to 1 lakh on life Insurance policies be exempted from income tax.

The meeting observed the need to ensure that  the small and marginal farmers should get the same benefits as those of companies; Incentives should be given for investments to promote agriculture and infrastructure;

Also crop Insurance benefits and interest subvention on agriculture credit be given through the means of Direct Benefit Transfer (DBT) in order to prevent loopholes, was raised in the meeting.

Highlighting the need for job creation in the country, the meeting deliberated that incentives must be given to job generating sectors in order to stabilize the economy.

The government must consider the time frame of recognition of bad debts, the delegations raised.

Also the banks called for an annual reporting to income tax office as oppose to the present monthly reporting pattern.

During the meeting, the Finance Minister said that in order to strengthen the banks, which are the key pillars of the economy, the Central Government has decided to take a massive step to re-capitalize the Public Sector Banks (PSBs) in a full fledged manner

Putting forth the stance of the government, Jaitley informed that the Government has decided to infuse capital worth Rs.2.11 lakh crore in PSBs in next two years through budgetary provisions of Rs.18,139 crore, and Rs. 1,35,000 crore through Re-capitalisation Bonds, and the balance through raising of capital by banks from the market. (With PIB Inputs) (KNN/DA)

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