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Bankers suggest cheaper credit to mid-cap exporters, inclusion of venture capital for SMEs

New Delhi, Jun 10 (KNN) Making cheaper credit to hundred mid-cap exporters and providing interest subsidy for solar power projects along with increased tax benefit for health insurance were among the suggestions made by bankers to the Union Finance Minister Arun Jaitley in a pre-budget meeting.

Various suggestions were received from the different representatives of the Banks and Financial Institutions.

Major suggestions include reduction in time limit and number of adjournments in case of SARFAESI matters for early resolution, statement in budget regarding recapitalization of public sector banks, dilution of government ownership in public sector banks up to 51 per cent, implementation of recommendations of Naik Committee Report, removal of mismatch between asset liability and banks’ balance sheets and need for revision of definition of priority sector lending among others, according to a Finance Ministry press release.

Some of the other suggestions include tax benefit limit for health insurance be suitably raised, tax exemption under Section 80C of the Income Tax Act be raised, Insurance Awareness be made part of corporate social responsibility(CSR), availability of cheaper credit to 100 Mid Cap exporters , interest subsidy for solar power projects, setting- up of National Asset Management Company for dealing with NPAs of the banks, relook at various provisions of New Companies Bill, inclusion of venture capital in case of small business/entrepreneurs as priority sector lending and making LIC a Public Limited Company among others, the release added.

Along with the Finance Minister, the meeting was attended by Minister of State for Finance and Corporate Affairs, Nirmala Sitharaman, Finance Secretary, Arvind Mayaram and other senior officers of the Ministry of Finance among others along with representatives from different banking and financial institutions. 

The Finance Minister Jaitley assured them that the issues raised and suggestions made by different representatives of banks and financial institutions will be looked into in detail and will be duly considered.