Mumbai, Feb 22 (UNI) Union Minister for Finance, Nirmala Sitharaman on Tuesday chaired a post-budget meeting with heads of banks, non-banking financial institutions (NBFCs) and financial institutions here. Underscoring the importance of information sharing and collaboration, she exhorted all the banks to sign up to the Account Aggregator model, which would facilitate seamless flow of credit for small borrowers and promote digital lending. The Finance Minister directed that pilot for Account Aggregator model and cashflow-based lending may be replicated in different regions across the country, including in the North Eastern Region, on the lines of the initiative by two banks in Varanasi district. It was emphasized that digital banking, digital payments and fintech innovations are an opportunity for banks to find new ways to reduce the cost of intermediation and provide cost-effective services and that the benefits of digital banking should reach every nook and corner of the country in a consumer-friendly manner. It was further stressed that banking industry should target to open accounts of unbanked adults under Jan Dhan Yojana and ensure insurance / pension coverage to all eligible adults. The meeting deliberated on various budget announcements in the context of PM GatiShakti, Defence, Telecom, Manufacturing & exports, Emergency Credit Line Guarantee Scheme (ECLGS) and tax concessions to new manufacturing units and start-ups, which offer new opportunities to the financial sector. The meeting also discussed various schemes / programmes such as subordinated debt to MSMEs, KCC, Aatma Nirbhar Bharat Schemes and credit outreach programme, which provided immediate relief to the borrowers and the banks, from the impact of the Covid-19 pandemic. ECLGS, which has been enhanced to Rs five lakh crore and extended up to March 31, 2023, was also discussed.
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