The government said the bank recapitalisation plan, revealed on Wednesday, would focus 'sharply' on increasing bank lending to the micro, small and medium enterprise (MSME) sector.

"Taken together, the recap & reform agenda is sharply focused on strengthening PSBs, increasing lending to MSMEs and making it easier for MSMEs and retail customers to transact as well as significantly increasing access to banking services," said the financne ministry in an official statement

"It includes a commitment to banking services within 5 kms of every village, refund  within 10 days of any unauthorised debit in electronic  transactions, a mobile App  for locating banking outlets and a mobile ATM in every underserved district," it added.

The government on Wednesday unveiled details of the re-capitalisation of Public Sector Banks (PSBs) announced in October, 2017. 

Under the plan, the capital infusion plan for 2017-18 includes Rs.80,000 crore through Recap Bonds and Rs.8,139 crore as budgetary support. 

"This plan addresses regulatory capital requirement of all PSBs and provides a significant amount towards growth capital for increasing lending to the economy," said the government.

Economic Affairs Secretary Subhash Chandra Garg said the recap plan would be cash neutral and the bonds thus issued would be non-SLR (Statutary Liquidity Ratio) and non-tradable.

The recap would be accompanied by a strong reforms package across six themes incorporating 30 action points based on the recommendations made at the PSB Manthan held in November, 2017 involving senior management of PSBs and representatives from Government. 

The reform agenda is aimed at EASE - Enhanced Access and Service Excellence, focusing on six themes of customer responsiveness, responsible banking, credit off take, PSBs as Udyami Mitra, deepening financial inclusion & digitalisation and developing personnel for brand PSB.