GOI seeks Parliament's nod for capital infusion of ₹20,000 crores into Public Sector Banks
The Finance Ministry on Monday sought for Parliament's nod to infuse ₹20,000 crores into Public Sector Banks (PSBs) via recapitalization bonds in the current financial year. This move is seen as a stimulus for the borrowers who were severely affected because of the ongoing pandemic.
The capital infusion is part of the first batch of supplementary demands for grants for 2020-21 moved by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday.
GOI also sought Parliament's nod for extra spending of ₹2.36 lakh crore during the current fiscal amid a crash in tax collection to spur growth.
In 2019-20, the Union Government proposed an infusion of ₹70,000 crores into the public sector banks in a bid to boost credit capabilities.