The minister also announced additional liquidity support of Rs 20,000 crore to housing finance companies (HFCs) by the National Housing Bank (NHB), thereby increasing the total support to Rs 30,000 crore.
The government announced partial credit scheme for purchase of pooled assets of non-banking finance companies and HFCs up to Rs 1 lakh crore to be monitored at highest level in each bank.
Prepayment notices issued to NBFCs will be monitored by banks.
The minister said that NBFCs will be permitted to use the Aadhaar authenticated bank 'Know Your Customer' (KYC) to avoid repeated processes.
The government has decided to make necessary changes in PMLA rules and Aadhaar regulations to ease the lending process.
"Working capital loans for industry will also become cheaper," Sitharaman said.
To reduce harassment and bring in greater efficiency, public sector banks (PSBs) will ensure mandated return of loan documents within 15 days of loan closure.
"This will benefit borrowers who have mortgaged assets," Sitharaman said.