New Delhi, Feb 1 Sending a clear message about India’s robust financial sector to the world, Finance Minister Nirmala Sitharaman on Sunday said to keep reforms on track, the government will set up a high-level committee on banking for Viksit Bharat.
This group will review the entire banking system and suggest changes to support India’s next stage of economic growth. At the same time, it will focus on financial stability, inclusion, and protecting consumers, said Sitharaman while delivering her 9th consecutive Budget speech in Parliament.
She said Indian banks are now in a strong position, with healthy balance sheets, high profits, and better control over bad loans. With asset quality improving and coverage crossing 98 per cent, the sector is seen as stable and ready for the next phase of growth.
She further stated that to improve efficiency in public sector NBFCs, the government plans to restructure them into larger, stronger entities like the Power Finance Corporation and the Rural Electrification Corporation.
"For foreign investors, the rules on non-debt investments under foreign exchange laws will be reviewed. The aim is to make them more modern and user-friendly, in line with India’s changing economic priorities," the Finance Minister said.
The government also plans to strengthen the corporate bond market by introducing a market-making framework with access to funds and derivatives on corporate bond indices. Additionally, total return swaps on corporate bonds will be introduced.
She said that to promote the municipal bond market, larger cities issuing high-value bonds will be incentivised with Rs 100 crore for a single bond issuance exceeding Rs 1,000 crore, building on the existing ‘Amrit’ scheme.
During the course of preparing the Budget, various inputs have been sought from the country’s citizens, including youth, through various platforms.
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