After giving fresh capital to public sector banks (PSBs), the government will now seek details of their fund raising plan for the next financial year to ensure that the exchequer is not burdened with additional capital infusion, as has been done this year.

Continued decline in food prices pulled down retail inflation to an 18-month low of 2.19 per cent in December 2018, creating headroom for the RBI to cut interest rate in its monetary policy review next month.

In order to dispel fears about a build-up of bad loans in Mudra loan schemes, the finance ministry is likely to ask banks to take the usual precautions on disbursals of such loans to the refinancing agencies, but by ensuring that lending to the targeted beneficiaries are not choked.