Technology essential to implement reforms: Rajeev Kumar

New Delhi [India], Jan 24 (ANI): Department of Financial Services (DFS) Secretary Rajeev Kumar on Wednesday said that technology needs to be used extensively to implement the banking reforms for a fast, clean, and transparent economy.

"These are a lot of reforms, and an effort to find an answer to different types of questions. Whatever lending is done needs to be fast, clean, and transparent. Technology needs to be used more and more for this", Kumar exclusively told ANI.

Reiterating the fact that the step is in line with Prime Minister Narendra Modi's vision of minimum government and maximum governance, Kumar said that the reforms are an important measure of financial inclusion and will enhance service.

"Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana where the subscribers get a life insurance of Rs two lakh by paying Rs 330 every year, and getting an accident cover of Rs. two lakh after paying Rs 12 are important measures of financial inclusion", Kumar added.

Kumar further stated that banks must re-orient themselves while taking cognisance of the growth and empowerment of the Micro, Small and Medium Enterprise (MSME) sector.

Meanwhile, a substantial amount of Rs 10,610 crore will be pumped into IDBI Bank under the recently-announced bank recapitalisation plan, the government announced earlier on Wednesday.

As per a detailed allocation list chalked out by the Ministry of Finance, it has been noted that as per the aforementioned initiative, Rs 88,139 crore capital infusions will take place in the current fiscal, spread across 20 public sector banks (PSBs).

"A detailed exercise has been undertaken by the Department of Financial Services (DFS) to ascertain the amount of capital that needs to be infused into public sector banks. The main objective of this is to fulfill the Government's responsibility to keep public sector banks in good health. We wish to build an institutional mechanism to ensure that the problems that we inherited do not recur", Finance Minister Arun Jaitley said in a press conference on Wednesday.

As per the allotted funds, State Bank of India (SBI) will get Rs 8,800 crore capital and Bank of India, Rs 9,232 crore, during the current fiscal, ending March 31.

Furthermore, UCO Bank will get Rs 6,507 crore; Punjab National Bank - Rs 5,473 crore; Bank of Baroda - Rs 5,375 crore; Central Bank of India - Rs 5,158 crore; Canara Bank - Rs 4,865 crore; Indian Overseas Bank - Rs 4,694 crore and Union Bank of India - Rs 4,524 crore.

Among the other banks selected for capital infusion are Oriental Bank of Commerce (Rs 3,571 crore), Dena Bank (Rs 3,045 crore), Bank of Maharashtra (Rs 3,173 crore), United Bank of India (Rs 2,634 crore), Corporation Bank (Rs 2,187 crore), Syndicate Bank (Rs 2,839 crore), Andhra Bank (Rs 1,890 crore), Allahabad Bank (Rs 1,500 crore), Punjab and Sind Bank (Rs 785 crore).

According to Jaitley, the government is working towards a mechanism to ensure that the governance of banks follows higher standards, for which a plan is being drafted.

"The ministry is working on two aspects. One, the basis on which the banks are being chosen for recapitalisation and how much money is to be inducted into which bank; and second is the various steps to be taken to ensure that the governance of the banks follows highest standards," he added.

For the unversed, Jaitley had announced an unprecedented PSB recapitalisation program of Rs 2.11 lakh crore in October 2017, in a bid to improve the lending capacity of banks.

Following this, the ministry earlier in January had presented a demand in the Lok Sabha for an additional expenditure towards the bank recapitalisation plan to the tune of Rs 80,000 crore to meet expenditure towards recapitalisation of PSBs, through the issue of government securities. (ANI)

This story has not been edited. It has been published as provided by ANI