Nirmala Sitharaman LIVE Updates: Announcement may be made to bring bad banks and petrol and diesel under the ambit of GST

Ahead of the GST Council meeting on September 17, an important meeting of Finance Minister Nirmala Sitharaman was held today. According to the information, in today’s meeting, bringing petrol and diesel under the purview of GST and bad bank were considered. In the budget speech of the current financial year, he had announced a bad bank.

Last month, the Indian Banks Association had submitted an application to the Reserve Bank of India proposing to set up a 6000 crore bad bank (NARCL or National Asset Re-Construction Company Limited).

what is bad bank

Bad Bank is not a bank, rather it is an Asset Re-Construction Company (ARC). Bad loans of banks will be transferred to this company. With this, banks will be able to give loans to more people easily and this will catch the pace of economic growth of the country. Simply put, when a person or institution does not take money from a bank i.e. loan and return it, then that loan account would be closed. After this, recovery is done according to its rules. In most cases, this recovery is not possible or even if it is not equal. As a result, the money of the banks gets sunk and the bank goes into loss.

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