Finance Minister Nirmala Sitharaman has started presenting the Union Budget 2021-22 in Parliament.  This budget assumes great importance as it comes in the shadow of corona pandemic. FM has announced many schemes in various sectors. During her speech, FM announced the set up of the bad bank to take over bad loans. 

Giving good news to the banking sector, FM has announced setting up of bad banl to address the stressed assets in the banking system through an ARC model. This announcement is important as the banking sector is on the verge of a second wave of bad loan spike. A bad bank could help shift the toxic assets to a separate entity so that banks can focus on fresh business. The government plans to further strengthen the NCLT framework and continue with the e-court system for faster resolution of bad debts. A separate framework for MSMSe will also be made by the government.

FM also announced PM Aatmanirbhar Swasth Bharat Yojana to develop capacities of health care systems, develop institutions for detection and cure of new and emerging disease is the first step to boost rural health and keep country ready for emergency handling of pandemic situations  In order to enhance their expansion and growth of insurance sector.  The finance minister also announced to hike the FDI limit in Insurance from 49% to 74%. 

Also Read: 

Union Budget 2021: FM Nirmala Sitharaman Proposes Rise In FDI Limit In Insurance From 49% To 74%

Budget Live: FM introduces voluntary vehicle scrapping policy to phase out old vehicles

Union Budget 2021: PM Aatmanirbhar Swasth Bharat Yojana worth Rs 64,180 cr to be launched