Union Finance Minister Nirmala Sitharaman said the government is taking steps to make India’s financial system stronger. A senior committee will be formed to review the banking system and suggest improvements to support the goal of “Viksit Bharat” (Developed India).
The government is also focusing on improving NBFCs (Non-Banking Financial Companies) and plans to make the corporate bond market stronger. This will help companies raise money more easily and support overall economic growth.
Steps Planned by the Government to Strengthen Banks:
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A high-level committee on banking will be formed to review how the banking sector is working.
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This committee will suggest ways to improve banks so they can support India’s future economic growth, while also making sure financial stability, inclusion, and customer protection are not affected.
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The government has also shared a clear plan for NBFCs (Non-Banking Financial Companies).
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These NBFCs will be given specific goals for lending more money to people and businesses and for using modern technology.
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To make public sector NBFCs bigger and more efficient, the government plans to restructure two major institutions:
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Power Finance Corporation (PFC) – a government-owned financial company that provides loans and financial support to projects in the power sector, such as electricity generation, transmission, and distribution. Its main role is to help improve power supply and infrastructure across India.
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Rural Electrification Corporation (REC) – a government-owned financial company that provides loans for electricity projects, especially to improve power supply in rural areas. Its main goal is to help villages get reliable and affordable electricity.
The government wants to make banks and NBFCs stronger, more modern, and more helpful for India’s growth, while keeping people’s money safe. She said India’s financial sector is in a better position now. Banks are healthier, their balance sheets are strong, and they are earning good profits. And to restructure companies like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will be the first step toward improving their performance and reach.
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