New Delhi | Jagran News Desk: In a bid to revive the Indian economy, Finance Minister Nirmala Sitharaman on Friday announced the upfront capital infusion of Rs 70,000 crore into public sector banks. The aim of this move is to boost lending and improved the liquidity situation.

Sitharaman said that the move is expected to generate an additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore.

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The finance minister further said that banks have decided to pass on the RBI rate cut benefits to borrowers through MCLR reduction.

Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.

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“Working capital loans for the industry will also become cheaper,” Sitharaman said.

Sitharaman said that to reduce harassment and bring in greater efficiency, public sector banks will ensure the mandated return of loan documents within 15 days of loan closure.

“This will benefit borrowers who have mortgaged assets,” she added. 

Posted By: Aalok Sensharma