Finance Minister Arun Jaitley today mentioned that the new insolvency law, indirect tax regime and demonetization will help drive India’s growth rate and sustain it at 8 per cent.
He added that there was a need to trust the banking system for meeting the needs of the economy and asked banks to, in turn, ensure clean lending to justify the trust reposed in them.
“Banks must strive to be seen always as institutions of clean and prudent lending,” he said at the annual review meeting of the public sector banks here.
Jaitley said the Insolvency and Bankruptcy Code (IBC), Goods and Services Tax (GST), demonetization and digital payments had enabled better assessment of financial capacity and risks which, coupled with inclusive growth, had unlocked the purchasing power which would drive India’s growth.
He said this should help India sustain a growth rate of around 8 per cent, an official statement said. “A growing economy will also help banks grow in strength,” he said.