FINANCIAL SECTOR (BUDGET)

About:

• She announced that Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance coverage to Rs. 5 lakh per depositor from Rs. 1 lakh previously.
  
  
• Limit for NBFCs to be eligible for Debt Recovery Mechanism via SARFAESI Act, 2002, is proposed to be reduced from existing asset size limits of Rs. 500 crore to Rs. 100 crores or loan size from existing Rs. 1 crore to Rs. 50 lakh.
  
  
• She proposed amendments in PFRDAI Act that will also facilitate separation of NPS trust for Government employees from PFRDAI. This would also enable establishment of a Pension Trust by the employees other than Government.
  
  
• The Government has proposed sale of a part of its holding in LIC by way of Initial Public Offer (IPO).
  
  
• The Finance Minister highlighted the Government’s commitment to infrastructure investment with its announcement of Rs 103 lakh crore National Infrastructure Pipeline projects. She informed that Rs 22,000 crore has already been provided for the same.
  
  
• She proposed the setting up of an International Bullion Exchange at GIFT-IFSC as an additional option for trade by global market participants.
  
  
• FPI limits in corporate bonds are proposed to be increased to 15 per cent of outstanding stocks from the current 9 per cent
  
  
• New Debt-based Exchange Traded Fund (ETF) consisting primarily of Government Securities will be floated.