Union Budget 2023-24 Expectation: What banking and finance sector wants this year

The banking and finance sector of India has numerous expectations from the Union Budget 2023-24 ahead of its announcement on 1 February by Finance Minister Nirmala Sitharaman. India hosts a vast network of banks and non-banking financial companies (NBFC). The sector plays a big role in facilitating credit, infrastructure, and investment in the country. There were around 100,000 scheduled banks in India as of 2021 according to Statista. These included about 98,000 comparatively small rural and urban cooperative banks. Twenty-two private sector banks had assets valued over $800 billion, while 12 public sector banks (PSBs) had assets worth over $1.5 trillion, as per Statista’s report. This makes the banking and finance sector a vital part of the Indian economy. Here are some of the expectations of banking and finance sector from Union Budget 2023-24: Fast-tracking the PSB privatisation programme The Budget should include fast-tracking the public sector bank (PSB) privatisation programme. The move is crucial for attracting investments and fulfilling the promise of ceding government control in many banks. Reduction of subsidies Murali Ramakrishnan, MD and CEO, South Indian Bank stated in a report by Financial Express that the government can take steps to cut non-priority expenditure by rationalising subsidies on fuel and fertilisers. At present, non-merit subsidies make up 5.7 percent of the country’s Gross Domestic product (GDP), which can be unsustainable in the long run. Level-playing field for NBFCs NBFCs have demanded that the threshold for allowing recovery proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act should be decreased to Rs 1 lakh from Rs 20 lakh. This will bring NBFCs on par with banks, small finance banks, housing financiers, and other financial institutions. Active liquidity support system to NBFCs Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, spoke regarding the active liquidity support system. In a report by Economic Times, he stated that the Small Industries Development Bank of India Bank of India (SIDBI) or NABARD (National Bank for Agriculture and Rural Development) should be made as the agency for offering active liquidity support to the NBFCs. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.