Capital Market

1)     Ongoing process of consultations with all the stakeholders on the enactment of the Indian Financial Code and reports of the Financial Sector Legislative Reforms Commission (FSLRC) to be completed.

 2)     Government in close consultation with the RBI to put in place a modern monetary policy framework.

 3)     Following measures will be taken to energize Capital markets:

 a)     Introduction of uniform KYC norms and inter-usability of the KYC records across the entire financial sector.

       b)    Introduce one single operating demat account

 4)     Uniform tax treatment for pension fund and mutual fund linked retirement plan

BANKING SECTOR

·        Time bound programme as Financial Inclusion Mission to be launched on 15 August this year with focus on the weaker sections of the society.

 ·        Banks to be encouraged to extend long term loans to infrastructure sector with flexible structuring.

 ·        Banks to be permitted to raise long term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL).

 ·        RBI to create a framework for licensing small banks and other differentiated banks. 

 ·        Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force, 

 ·        Six new Debt Recovery Tribunals to be set up.

 ·        For venture capital in the MSME sector, a Rs 10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity , quasi equity, soft loans and other risk capital for start-up companies with suitable tax incentives to participating private funds to be established.

 ·        Under Ajeevika, the provision of bank loan for women SHGs at 4% to be extended to another 100 districts.

 ·        Allocation for National Housing Bank increased to Rs 8000 crore to support Rural housing.

 ·        “Long Term Rural Credit Fund” to set up for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of  Rs 5,000 crore.

 ·        Bank Capitalization : Requirement to infuse  Rs. 2,40,000 crore as equity by 2018 in our banks to be in line with Basel-III norms

 ·        Capital of banks to be raised by increasing the shareholding of the people in a phased manner

Insurance Sector

·        The pending insurance laws (amendment) Bill to be immediately brought for consideration of the Parliament.

 ·        The regulatory gap under the Prize Chits and Money Circulation Scheme (Banking) Act, 1978 will be bridged.

Small Saving Scheme

·        Kissan Vikas Patra (KVP) to be reintroduced.

 ·        A special small savings instrument to cater to the requirements of educating and marriage of the Girl Child to be introduced.

 ·        A National Savings Certificate with insurance cover to provide additional benefits for the small saver.  

 ·        In the PPF Scheme, annual ceiling will be enhanced to Rs.1.5 lakh per annum from  Rs. 1 lakh at present.