The Union Finance minister has announced a capital infusion of Rs. 70,000 crores in public sector banks. This aid is expected to generate additional liquidity of Rs. 5 lakh crore to the market. Banks have also decided to pass the RBI rate cut benefit to the customers hoping that it will help boost growth.
Additionally, loans linked with repo rate and external benchmarks offering lighter EMI’s on retail loans like housing, auto, and others will be introduced.
In a bid to revive the financial sector, the government has already infused 2.5 lakh crore since FY15. Earlier, NITI Ayog’s Vice Chairman had stated that timely steps will be taken to infuse positivity.