“As committed, banks will get fund infusion in the fourth quarter. Banks will get about Rs. 5,000 crore,” Financial Services Secretary Anjuly Chib Duggal said on the sidelines of an event here.
Funds would be infused after Parliament approves the third Supplementary Demand for Grants in the upcoming Budget session.
Last year, the government announced a revamp plan ‘Indradhanush’ to infuse Rs. 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs. 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel-III.
In line with the blueprint, PSU banks will get Rs. 25,000 crore this fiscal and also in the next fiscal. Besides, Rs. 10,000 crore each would be infused in 2017-18 and 2018-19.
Of the Rs. 25,000 crore earmarked for 2015-16, the government has pumped in about Rs. 20,088 crore in 13 public sector banks so far.
Talking about initiatives taken by the government to deepen the social security net, Duggal said banks are addressing last mile connectivity issues.
The Department of Financial Services is holding discussions with banks on a regular basis to sort out issues as soon as possible, she said.
Banks such as SBI and Andhra Bank are currently addressing the issue of Internet connectivity in the 800 identified areas.
Besides, steps are being taken to strengthen Internet connectivity in various parts so that Direct Benefit Transfer (DBT) is made seamless.
Source : Thehindubusinessline