Government to Kickstart Credit Outreach Programme From October 15

Finance Minister Nirmala Sitharaman on Monday said that liquidity will not be a concern for the economy as from October 15 onwards the government will start a major credit outreach programme.

Speaking during an event organised by industry body CII, the Finance Minister said that non banking financial companies (NBFCs) as well as micro finance channel has been decongested and from October 15 onwards, a special drive would be launched to ensure the availability of liquidity for those who require it.

The outreach programme to make liquidity available, is likely to support various sectors like exports and is meant for addressing the concerns arising out of the Coronavirus pandemic and the resultant economic crisis. It is likely to be in the form of loan melas which could be held across the entire country.

The Reserve Bank of India has already pumped in some liquidity through open market operations which has led to a higher average surplus of over Rs 6 lakh crore in the banking system.

Speaking on raising funds, Ms Sitharaman said that the government’s disinvestment programme was progressing well. Centre plans to raise Rs 1.75 lakh crore through stake sale in various blue chip public sector companies in the current fiscal,.

She further informed that health infrastructure in smaller cities and towns will be ramped up as the vaccination drive has increased.