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Income tax concessions, farm relief package likely on cards in today’s Interim Budget
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Income tax rebate to those who earn up to Rs 5 lakh from April 1: CBDT chairman
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Watch: Unprecedented scenes inside Parliament after Piyush Goyal announces tax rebate up to Rs 5 lakh
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Piyush Goyal assures strong action against illicit Swiss bank deposits by Indians
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While some analysts believe that it could boost incremental lending, the issue of banks having to sell and take a haircut remains
The economic uncertainties from the Covid -19 pandemic has once again re-opened the debate on the need for setting up a bad bank to take care of the fresh wave of bad loans and also free up resources for lending.
While the Finance Ministry is understood to be examining such a proposal, Reserve Bank of India Governor Shaktikanta Das also recently said the central bank is open to look at such a plan.
Significantly, the Economic Survey 2020-21 has been silent on the issue of a bad bank but has pointed out the need for an asset quality review after the current forbearance ends and a re-capitalisation of banks to spur lending.