Banks to be infused with Rs 14,000 Crore Capital to meet basel III Norms-Financial inclusion on Bank Agenda

black moneyThe Finance Minister Shri P.Chidambaram has taken steps in the budget to ensure adequate capitalization of the public sector banks. The Public sector banks will be provided with an infusion of Rs 14,000 crore additional capital in 2013-14 budget estimates to enable them to meet the BASELIII norms.He said Rs 12,517 crore infusion of capital into the 13 Public Sector Banks shall be done by March 2013.

In order to achieve financial inclusion in addition to all Scheduled Commercial banks and RRBS, all the Cooperative Banks and other Banks will now shift to Core Banking Solution(CBS) by 31 March 2013. All Branches of Public Sector Banks in the country will have ATMs by the deadline of 31st March, 2014. In order to address gender related issues and empower women India’s first public sector Women’s Bank will be set up with Rs.1000 crore as the initial capital. This Women’s Bank will lend funds to women, women run businesses, women SHGs and will employ predominantly women and be functional from October 2013 .

Terming the financial sector as the heart of the economy the Finance Minister announced constitution of a standing Council of Experts in the Finance Ministry to analyze the international competitiveness of the Indian Financial sector. Alerting thatthe Financial Sector Legislative Reforms Commission will present its report next month Chidambaram said it is the Governments intention to act quickly and decisively on the recommendations so that our financial system stands on sound legal foundations.