Centre to infuse Rs 2.11 lakh crore into PSU banks

The government said the move aimed at pushing growth and creating more jobs in the country.

The package has been cleared by the the Cabinet.

Union Finance Minister Arun Jaitley, addressing a press conference in the country, said more banking reforms will be announced in the upcoming days.

Speaking at the conference, Jaitley said: "There is a need to increase public investment."

He said: "Post demonetisation, public sector banks have adequate lending capacity now."

Speaking on the decisions taken, the Finance Minister said: "It was decided that a bold step needs to be taken by the government to recapitalise banks."

Jaitley said the fundamentals of the Indian economy is strong.

"In government's view, the fundamentals of the national economy continue to be strong," Jaitley said while addressing press conference here which was attended by top officials of the ministry.

Meanwhile, the Central government has waived off penalty on delayed filing of initial Goods and Services Tax (GST) returns for months of August and September.

In a tweet on Tuesday, Union Finance Minister Arun Jaitley said, "To facilitate taxpayers, late fee on filing of GSTR-3B for Aug&Sept has been waived. Late fee paid will be credited back to taxpayer ledger."

The government had earlier waived the late fee for delayed filing for the month of July, media reported.