After a few hours of back of forth owing to the demise of former foreign minister and sitting Member of Parliament, E Ahamed, Finance Minister Arun Jaitley has finally tabled the Union Budget 2017-18. Continuing on the ruling government s most primary projects, the proposed Union Budget for the year develops on Make in India and Digital India initiatives. The Finance Minister said that in the coming year, the government aims to provide core banking support for cooperative banks, in order to create seamless banking in the country. Also Read - India may soon announce its own ‘Atmanirbhar’ app store as alternative to Google, AppleAlso Read - Work from home: Here is a look at TCS and Infosys' long-term plan
In order to do that, the Finance Minister suggested to rope in companies like Infosys, TCS, FIS to sell core-banking software. In addition to that he also proposed new payment banks and small banks in the country, for smoother and easier transaction. Also Read - FASTag is now free until February 29, NHAI waves off charges for 15 days
Talking about demonetization, the minister said the move will help make the economy cleaner and get rid of a parallel economy that is unacceptable in an inclusive economy. He also said that the demonetization is linked to the JAM strategy through digitization. The JAM strategy essentially refers to the government s Jan Dhan, Aadhaar and Mobile initiatives.
The minister expects that the demonetization will increase flow of financial savings, and give rise to higher GDP and tax revenue. He believes that the policy will help to transfer resources from tax evaders to the government, eventually allowing the government to be able to do more for the country.
Ahead of the Budget, Finance Minister Arun Jaitley launched the India Post Payments Bank branches, saying the network of post offices can take banking operations to every doorstep. The postman connects every household. They can reach every house for banking activity. Banking can reach your doorstep. The network of post offices can make it a reality, Jaitley said after he with Communications Minister Manoj Sinha remotely launched the Raipur and Ranchi India Post Payments Bank branches. ALSO READ: Arun Jaitley launches India Post Payments Bank branches in Raipur and Ranchi
As many as 1.55 lakh post offices in the country and the postmen will function as banks giving a major push to banking, he said. Jaitley said that about 650 India Post Payments Bank (IPPB) branches will be opened by September this year. The impact of payments bank that were announced by RBI in 2015, will be felt now. Payment banks will not have any geographical limitations. The telephone company stores will run as payments banks. The post office in the country will turn into bank branches, he added.