In their pre-Budget consultations with Finance Minister Nirmala Sitharaman, stakeholders from the financial sector demanded a reduction in Goods and Services Tax (GST) levied on term insurance, in order to increase its penetration, and a streamlining of Know-Your-Customer (KYC) norms to further the cause of financial inclusion.

Representatives of the financial sector and capital markets also highlighted the need for governance changes in public sector banks (PSBs), with special focus on the PJ Nayak Committee recommendations.

“There were taxation suggestions. We have taken note of it. Taxation concerns would be addressed in given fiscal space. Inflation is still benign, credit growth is also happening. All these factors will be kept in mind,” Finance Secretary Rajiv Kumar said.With a view to give a boost to Indian markets, the representatives submitted several suggestions like enhancing credit off-take from banks, PSBs’ governance, risk capital issues, improving functioning and alleviation of stress among NBFCs, an official statement said.

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