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Press Information Bureau
Government of India
Ministry of Finance
05 JUL 2019 1:41PM by PIB Delhi
 Expert Committee to be set up to recommend the structure and required flow of funds through development finance institutions

The Government has announced its intention to invest Rs 100 lakh crore in infrastructure over the next five years. The Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2019-20 in Parliament today, informed that to this end, it is proposed to set up an Expert Committee to study the current situation relating to long-term finance and our past experience with development finance institutions and recommend the structure and required flow of funds through development finance institutions.”

The Finance Minister said that for “efficient and conducive regulation of the housing sector, it is proposed to return the regulation authority over the Housing Finance Sector from NHB to RBI. Necessary proposals have been placed in the Finance Bill.”

Keeping in view the wider interest of the subscribers and to maintain arm’s length relationship of the NPS Trust with PFRDA, steps are proposed to be taken to separate the NPS Trust from PFRDA with appropriate organizational structure. To facilitate on-shoring of international insurance transactions and to enable opening of branches by foreign reinsurers in the International Financial Services Centre, the Finance Minister said that it is proposed to reduce Net Owned Fund requirement from Rs 5,000 crore to Rs 1,000 crore.

“For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rs One Lakh Crore during the current financial year, the Government proposes to  provide one time six months' partial credit guarantee to Public Sector Banks for first loss of up to 10%.  To bring more participants, especially NBFCs, not registered as NBFCs-Factor, on the TReDS platform, amendment in the Factoring Regulation Act, 2011 is necessary and steps will be taken to allow all NBFCs to directly participate on the TReDS platform” the Union Finance Minister informed.

 

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