Sitharaman announces measures to increase liquidity in Indian PSBs

Amid concerns of economic downturn and looming liquidity crisis in the financial sector, the Indian government will be providing Rs 70,000 crore upfront capital to Public Sector Banks (PSBs). The capital, which is additional to the Rs 5 lakh crore infusion announced in budget 2019, is expected to bolster liquidity of the banks and increase lending.

Addressing the media on Friday, Finance Minister Nirmala Sitharaman announced several measures to bolster the economy and improve market sentiment which has been struggling over the past few weeks.

She also announced a slew of measures to ensure that loans for home, vehicles and consumer goods become cheaper and widely available through banking and non-banking finance companies.