- Suggestions of the heads of the bank to the Finance Minister:
- Reconsider the decision of setting up National Asset Management Company to deal with the problem and address capital issues of state-owned lenders.
- Statement in budget regarding capitalisation of banks.
- Dilution of government ownership in public sector banks up to 51%.
- Implementation of recommendations of the Naik committee report.
- Removal of mismatch between asset liability and banks’ balance sheets.
- Revise the definition of priority sector lending.
- Strengthen the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act to ensure fast recovery of bad loans.
- Raise the tax benefit limit for health insurance, and for tax exemption under Section 80C of the Income Tax Act to be enhanced from the existing Rs.1 lakh per annum.
- Consider listing of Life Insurance Corporation of India (LIC).
- Changes to the Rajiv Gandhi Equity Saving Scheme to facilitate a shift from gold and real estate to the equity market.
- Strengthen venture capital and alternate investment funds to meet the capital needs of small and medium enterprises.
- Double the minimum threshold for tax deducted at source for interest earned on fixed deposits to Rs.20,000.
- Read at: http://www.thehindu.com/todays-paper/tp-business/bankers-pitch-for-dilution-of-govt-ownership/article6102722.ece
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