Budget 2020: FM to meet heads of PSBs to discuss credit situation, economy

The finance minister’s meeting with chief executives and managing directors of banks ahead of the Union Budget assumes significance in view of the critical role the banking sector plays in boosting consumer demand across sectors. Sitharaman is expected to present her second Budget on February 1, 2020.

According to sources, she will also review Budget announcement on absorption of Merchant Discount Rate charges by banks, overdraft facility to PM Jan Dhan Yojana account holders through RuPay debit Card. “I, therefore, propose that the business establishments with annual turnover more than Rs 50 cr shall offer such low-cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants.

“RBI and banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment,” she had said in her Budget speech in July. Performance review of online platform for auction of secured assets under SARFAESI Act is also one of the agenda for the meeting, sources added.