Govt to upfront infuse Rs 70000-cr capital into PSB: Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman on Friday announced upfront capital infusion of Rs 70,000 crore into public sector banks, a move aimed at boosting lending and improving liquidity situation.The move is expected to generate an additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore, she said at a press conference.The finance minister further said that banks have decided to pass on RBI rate cut benefits to borrowers through MCLR reduction.Sitharaman said that banks will launch repo rate and external benchmark-linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.'Working capital loans for the industry will also become cheaper,' the minister said

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