Union Budget 2024 | Expect dynamic and timely reforms in banking sector, says SNG & Partners founder

'FDI in banking should be increased to invite more capital; government participation in public sector banks should be reduced ASAP, among other things,' he said.

Finance Minister Nirmala Sitharaman will present the Union Budget on July 23. News has emerged that Prime Minister Narendra Modi might have a more troubled Budget this time, to accommodate the wishes of his alliance partners JD(U) chief Nitish Kumar and TDP supremo Chandrababu Naidu. However, it is more likely that the Budget will be a feel-good one, coming on the back of the Rs 2.11 lakh crore record dividend to the union government from the RBI.

"Banking requires dynamic and timely reforms for country like India. FDI in banking should be increased to invite more capital; government participation in public sector banks should be reduced ASAP; incentives to individuals on tax applied on fixed deposits should be given to increase liability business and to create level playing field with the stock market and create balance; Big incentives should be given to private sector especially SME on Capital Expenses for capacity building and increase employment and also to reduce dependance on government spending; focused reform and incentives be given on long term lending by Banks on identified infrastructure projects; tax concessions should be given to private sector availing Green Finance to set up greenfield and brownfield Green Projects," said Rajesh Narain Gupta, Founder & Chairman, SNG & Partners.

"Protections should be given to decision makers in banking sector where loans go bad or leads to fraud where decision is taken in normal course and committee-based approach. Fear of penalty and prosecution need to be balanced for the banking industry to apply themselves," he added.

Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.