1. Our Challenges First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broad based Second challenge is to make growth more inclusive; have to strengthen food security Third challenge is to overcome weakness in government's public delivery mechanism; a long way to go in this.
2. Banking Dilemma Apex level financial stability council to be set up for banking sector Indian Banking Association to give additional licenses to private players. Provision for further capital for Regional Rural Banks (RRBs).
3. 16,500 crore to Public sector Undertaking (PSU) banks so as to maintain their Capital Adequacy ratio (CAR) in tier 1 (8%) Nothing for re-capitalisationof Indian banks(non-performing assets (NPAs)) Formalize a symbol for the Indian rupee Foreign investment reform usher in more funds to the financial services industry RFID Banking Scenario (Radio Frequency Identification) Extend repayment of the loan amount by farmers from December 31, 2009 to June 30, 2010.
4. Interest rate subsidy of 1% for home loans less than 10L (on property less than 20L) to continue for 1 more year. Farm Credit is being raised to Rs.3,75,000 crorefrom Rs.3,25,000 crore. Swavalambaninitiative –government contributes Rs.1,000 per year to each New Pension Scheme (NPS) for 3 years.(Unorganised Sector) Loan Waiver scheme, is entitled to a waiver of 25 per cent of the amount due, on the condition that he repays the remaining 75 per cent. Rs.1,900 crore for Unique Identification Authority of India
6. Norms/ Hurdles for Licensing Open branches in the rural areas for the first two years. Spread will depend on the basis of their direct lending to agriculture sector, opening of no-frills accounts Setback for companies such as Reliance Capital, Mahindra, Cholamandalam and Tata Finance Norms a setback for new entrants
