The government is likely to make crucial announcements in connection with the recapitalisation of banks, following a meeting which is being currently attended by top officials today October 24. According to the ministry, Finance Minister Arun Jaitley will address a press conference at about 4 pm on Tuesday. The ministry did not elaborate on the talking points of the press conference, but it is likely that Arun Jaitley will make crucial announcements in connection with the recapitalisation of banks, CNBC-TV18 citing sources said.
The government is also looking forward to reforms in the banking system. Earlier, Arun Jaitley had suggested bank recapitalisation to provide relief to banks dealing with non-performing assets. According to CNBC-TV18, Arun Jaitley may announce recap bonds (not G-Secs) for the recapitalisation of banks on the back of weak balance sheets.
Earlier today, the Finance Minister, in a major relief to traders and businessmen, tweeted that the government has waived penalty on the delayed filing of initial GST returns for the months of August and September. Businesses have been demanding that the government waives the penalty for delayed filing of 3B returns.
FM Shri @arunjaitley to address a Press Conference at 4 pm today at National Media Centre in natonal capital.
— Ministry of Finance (@FinMinIndia) October 24, 2017
The government is in the midst of slow economic growth which slumped to a three-year low at 5.7% in the second quarter of the current fiscal. Recently, the newly-formed Economic Advisory Council to the Prime Minister (EAC-PM) met for the first time and identified key areas to work on to boost India’s economic growth. The EAC headed by Bibek Debroy had maintained that the government should stick to its fiscal deficit target.