Pre-Budget meet: Bankers want tax deduction for NPAs

The Finance Minister today held a pre-Budget discussion with key bankers. Key suggestions include increasing the TDS ceiling for term deposits from Rs 10000-25000 and tax deductions for non-performing assets (NPA) provisioning.

SBI CMD Pratip Chaudhuri said,"I think the RBI should allow some interest something like 2 percent to be paid on current account. Suggestions are for example the retail depositors, today the threshold for term deposits is Rs 10,000. Our view is that since almost all the FD interest investors have got their pan number registered this amount should be increased to Rs 25,000." Govt likely to infuse $544m in FY13: SBI
"Definitely today the policy rate is 8%. Inflation should come down to 3 percent to review the rate that is depending on macro economic situation," RBI Deputy Governor KC Chakraborty adds.