Finance Minister Nirmala Sitharaman on Friday 23 August 2019, have announced upfront capital flow of Rs 70,000 crore into public sector banks. The move is aimed to boost up lending and improve liquidity situation. 

The move is expected to contribute towards generating additional lending and liquidity in the financial sector to the tune Rs 5 lakh crore, said the Finance Minister at a press conference. 

From sometime various sectors have been demanding to help them over the tide crisis with stimulus packages. Sitharaman has also announced a Partial Credit Guarantee Scheme for the purchase of pool.

NFBCs will now be able to use Aadhaar-authenticated KYCs to simplify the taking up of credit. “This was a major demand, we ensured that we give them this benefit,” the Finance Minister stated at the media briefing. 

Housing finance companies will now get an additional Rs 20,000 crore from the National Housing Bank (NHB).

The funding to the NHB has been increased to Rs 30,000 crore, up from Rs 20,000 crore, said Sitharaman.