The Finance Minister, Shri Arun Jaitely presenting the Union Budget 2015-16, here today, said that the government is committed to increasing access of the people to the formal financial system. In this context, Government proposes to utilize the vast Postal network with nearly 1,54,000 points of presence spread across the villages of the country . The Minister hoped that the Postal Department will make its proposed Payments Bank venture successful so that it contributes further to the Pradhan Mantri Jan Dhan Yojana.

 Shri Jaitley said that to bring parity in regulation of Non-Banking Financial Companies (NBFCs) with other financial institutions in matters relating to recovery, it is proposed that NBFCs registered with RBI and having asset size of ₹ 500 crore and above will b considered for notifications as ‘Financial Institution’ In terms of the SARFAESI Act, 2002.

Financial institution classification expanded to bring larger NBFCs within SARFAESI recovery framework, affecting enforcement rights. The Budget proposes using the national postal network to establish a Payments Bank to widen access to formal financial services and support nationwide deposit-inclusion efforts; and proposes designating registered NBFCs meeting an asset-size threshold as Financial Institutions for purposes of the SARFAESI Act, thereby bringing qualifying NBFCs within statutory recovery mechanisms.