The Centre is committed to ensuring policy certainty and regulators have a key role in ensuring the same, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman said.
The government is working with regulators on the issue, she said while interacting with industry captains at a Confederation of Indian Industry meeting here on Tuesday.
Expressing the government’s keenness to facilitate trends and sectors that are the future of the Indian economy, she acknowledged that there are seminal changes happening in the financial sector, which the government policy should facilitate, the Press Information Bureau (PIB) said in a release.
“The economy is moving gradually from a bank-led lending model to a more market-based finance model,” Ms. Sitharaman said. “Also, once the Development Finance Institution is operational, it will perform the function of long-term lending which has traditionally been done by banks,” Ms. Sitharaman said and added that this would increase the competition for banks and also improve their efficiency.
Emphasising on the importance of the government and industry working together to create India’s own equity capital, she said sunrise sectors and start-ups should be identified so that they can contribute to the future of India.
Lauding the risk-taking ability of start-ups, she urged the industry also to come forward and take risks and assured industry captains of addressing issues related to competitiveness, including high power tariffs, and cumbersome regulatory compliances.
Earlier in the day, the FM held meetings with senior officials of the Income Tax Department, GST and Customs.
On Wednesday, she will chair the annual review of performance of public sector banks with the heads of all PSU banks.
She will also unveil EASE 4.0 (Enhanced Access and Service Excellence), a common reform agenda for PSBs aimed at institutionalising clean and smart banking. EASE 1.0 was introduced in January 2018.
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