Homeeconomy News

    Key quotes from FM Nirmala Sitharaman: Measures to achieve higher economic growth

    Key quotes from FM Nirmala Sitharaman: Measures to achieve higher economic growth

    Key quotes from FM Nirmala Sitharaman: Measures to achieve higher economic growth
    Profile image

    By CNBCTV18.COM IST (Published)

    Here are some of the key quotes from finance minister Nirmala Sitharaman on measures to achieve higher economic growth:
    On supporting honest decision making in banks
    “In order to support decision making and to prevent harassment for genuine commercial decision by bankers, the CVC has issued directions that internal advisory committee (IAC) in banks to classify cases as vigilance and non-vigilance. Decision by the IAC and the banks chief vigilance officers to be treated as final. So, because that happens there and then decision taking risk will not be any more laden in their heads. So, we expect that will protect honest decision making in the banks.”
    On credit support for purchase of houses
    “More credit support for purchase of houses, vehicles and for consumption goods. How are we doing this, additional liquidity support for Home Finance Corporations (HFCs) for Rs 20,000 crores by the National Housing Bank (NHB) and thereby increasing it to Rs 30,000 crore which is an increase which we are making now. Partial credit guarantee scheme for purchase of pooled assets of NBFCs and Home Finance Corporations up to Rs 1 lakh crore to be monitored at the highest level in each of the banks.”
    On lending a helping hand to NBFCs
    “NBFCs will now be permitted to use Aadhar authenticated bank KYC to avoid repeated processes. To take advantage of the liquidity that which is there with the PSBs and the last mile consumers connect that the NBFCs have so that PSBs can fast-track collaboration for loans particularly to the MSMEs, so the co-origination is the rules or requirements of the banks will apply even in the context of the NFBC where the requirement probably do not exist or are harsher. So this will work together and bring in the synergy between the NBFCs and the banks so that where the NBFCs are present the banks advantages will reach and where there are no NBFCs the banks themselves can push it forward.”
    On GST refunds for MSMEs
    “It was rampantly heard from a lot of MSMEs saying that our refunds are stuck, we are not sure when we will get it, will you give it? This is clearly time bound now. All pending GST refunds due to MSMEs till now shall be paid within 30 days. Everything that is pending from the time of introduction of GST, from then till today whoever has got a pending refund problem, it will be sorted out within 30 days from today. For future GST refunds for MSMEs, every GST refund matter will be sorted out within 60 days after it arises.”
    On MSME definition
    MSME Act, we are addressing that issue because the MSME Act will now go to the cabinet with inputs taken from all of the ministries concerned just so there is one meaningful definition through which companies now can feel a lot more at ease with their business activity.UK Sinha Committee has come up with lot of recommendations, many of which are already on board. We shall ensure decisions on recommendations such as on ease of credit, marketing, technology, delayed payments etc. are all addressed at the earliest.
    On shifting gears for the auto sector
    “BS IV vehicles which are purchased up to March 31 2020 will all remain operational for their entire period of registration. So it is not as if from 2020 BS IV vehicles are all of the road, not at all. As long as their registration is on, it will be allowed and they will be as good as any other vehicle.”
    On increasing capital flows and energising financial markets
    “In India there is a need for deepening bond markets. In order to improve access to long term finance, it is proposed to establish an organisation to provide credit enhancement for infrastructure and housing projects. This would enhance debt flow towards such projects. The name of the organisation will be in a day or two revealed but that organisation will take care of providing credit enhancement facility for infrastructure and other housing projects. The government would soon take further action on development of credit default swap markets in consultation with RBI and SEBI. In order to improve domestic markets in bonds ministry of finance will work with RBI to make it more conducive for investors and for bond issuers as well as facilitate increased trading for price discovery - a lot more open market driven kind of a price discovery mechanism.”
    On Aadhaar based KYC for demat accounts
    “In order to improve market access for the domestic retail investors, Aadhaar based KYC to be permitted for opening demat accounts and making investment in mutual funds. Necessary notification for amendments in the PMLA rules will be issued sooner.”
    Follow our complete coverage of measures announced by finance minister Nirmala Sitharaman here.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All