Business/Economy

New reforms allow 'honest' borrowers to get easy loans

New reforms allow 'honest' borrowers to get easy loans

Financial Services Secretary Rajiv Kumar has said honest borrowers would find it much easier to acquire loans from the Public Sector Banks after the reforms have been undertaken, thus, submitting a statement that there would be a premium on integrity.
This comes after the government last week declared a set of reforms for the banking sector and further stated that it would infuse an unprecedented amount of Rs 88,139 crore of Capital in as many as 20 such banks before the end of this financial year in order to boost lending and accordingly, revive growth.
 

Finance Minister Arun Jaitley announced the reforms and also briefed that the stringent norms for disbursal of higher value loans have been set. It will also have strict surveillance on big loan defaulters.

According to recent reports, Public Sector Banks have been reeling since a while under Non-Performing Assets (NPAs) and bad loans, the amount of which is worth nearly Rs. 8 lakh crore and as a result of this, it has hampered lending which has made an impact on its growth.

Mr. Rajiv Kumar also added that along with various fintech tools, a GST return filed also gives a commendable idea to banks about the cash flow. 
Meanwhile, banks would also make an effort on enhancing exposure to MUDRA and Stand Up India. Since the launch of the former by PM Modi back in 2015, such banks have disbursed nearly Rs. 4 lakh crore to more than 8.50 crore beneficiaries.