Page 14 - Banking Finance April 2020

ROUNDUP

Fin Min announces relief lion women Jan Dhan account holders Government launches PM
will get Rs 500 per month for the next
package worth Rs 1.7 lakh CARES Fund
three months.
crore for poor The government has set up a public
Merger scheme of all PSU charitable trust in a bid to have a dedi-
The government has announced a Rs
1.7 lakh crore relief package along banks will be effective on cated national fund with the primary
with insurance cover for frontline medi- April 1 objective of dealing with emergency or
cal personnel. Around 800 million distress situation like the current
people will receive free cereals and The Reserve Bank of India has said that COVID-19 pandemic as well as to pro-
cooking gas apart from cash through all the merger scheme for all the 10 vide relief to the affected.
direct transfers for three months. public sector banks into four bigger and Under the name of 'Prime Minister's Citi-
stronger banks will begin on April 1. zen Assistance and Relief in Emergency
The 21-day lockdown started on March
Situations Fund' (PM CARES Fund)', the
25. The Pradhan Mantri Garib Kalyan
RBI said all branches of Oriental Bank fund visions to make a better and
Yojana includes higher wages under of Commerce and United Bank of In-
the Mahatma Gandhi National Rural dia will function as branches of Punjab healthier country. Prime Minister will be
the Chairman of this trust and its Mem-
Employment Act (MGNREGA), Rs National Bank, the anchor bank, from
1,000 ex-gratia payment to nearly 30 bers include Defence Minister, Home
April 1. Similarly, all branches of Minister and Finance Minister. The PM
million poor senior citizens, widows Allahabad Bank will function as stated that citizens will get tax benefits
and disabled as well as insurance cov- branches of Indian Bank from that day, by donating to this fund.
erage of as much as Rs 50 lakh each
while all branches of Andhra Bank and
for about 2 million healthcare workers Corporation Bank will function as "People from all walks of life expressed
battling the disease. branches of Union Bank of India from their desire to donate to India's war
against COVID-19. Respecting that
"We've immediately responded within April 1. And, all branches of Syndicate
36 hours of the lockdown. We've first Bank will function as branches of spirit, the Prime Minister's Citizen As-
sistance and Relief in Emergency Situ-
reached out to the poorest of the poor, Canara Bank from the next month.
ations Fund has been constituted. This
who need help," finance minister will go a long way in creating a
Nirmala Sitharaman said "We will think "The Amalgamation of Oriental Bank healthier India," PM Modi stated in a
about the others… will gradually ad- of Commerce and United Bank of In- tweet.
dress if there's more to attend to," she dia into Punjab National Bank Scheme,
said, when asked about a stimulus plan 2020 dated March 4, 2020, issued by
for companies amidst the economic the Government of India was pub- Fin Min assures banking
pain. lished under Extraordinary Part II-Sec- services will continue un-
tion 3-Sub-section (i) in the Gazette of
"It's a very well-defined package, re- hindered during the
India sanctioning the Amalgamation of
inforcing government's intent that no Oriental Bank of Commerce and lockdown
one should be deprived of basic facili-
United Bank of India into Punjab Na-
ties in today's stressed times. We are Finance Minister Nirmala Sitharaman
tional Bank in terms of section 9 of the
hopeful of more calibrated responses assured citizens that banking services
Banking Companies (Acquisition and
in coming weeks as the impact of the will continue unhindered during the
Transfer of Undertakings) Act, 1970 (5
pandemic unfolds," said State Bank of lockdown.
of 1970) and section 9 of the Banking
India chairman Rajnish Kumar. Sithraman said the banks were doing
Companies (Acquisition and Transfer of
their best to ensure customer service
Under the package, the government Undertakings) Act, 1980 (40 of 1980).
will provide 5 kg of wheat or rice and The scheme comes into force on the without disruption. "Had a detailed
conversation with chiefs of Banks-pub-
1 kg of pulses free every month for the 1st day of April 2020," the RBI said in
next three months. Besides, 204 mil- a release. lic & private. Encouraging to know

12 | 2020 | APRIL | BANKING FINANCE