Banks on Thursday urged finance minister Nirmala Sitharaman to offer tax sops on fixed deposits in the budget to arrest the trend of falling savings.

Suggestions regarding improving efficiency of capital markets and increasing capital market inclusion were made during the pre-budget meeting with the finance minister, Edelweiss Mutual Fund MD & CEO Radhika Gupta told reporters here.

Recommendations regarding incentives towards long-term saving, both debt and equity, were also offered to the FM, she said.

Finance minister Nirmala Sitharaman on Thursday chaired the seventh pre-budget consultation with stakeholders from the financial sector and capital markets.

The meeting was attended by finance secretary and secretary DIPAM; secretaries of department of economic affairs and financial services, and the chief economic adviser.

The full Budget 2025-26 is scheduled to be presented in Parliament on February 1.

The NBFC sector pitched for a refinance window for green finance and electric vehicles, FIDC director Raman Aggarwal said.

“There is a very strong case for a direct refinance window provided to NBFCs. A specific fund, meant for MSMEs, for small borrowers and for environment-friendly assets such as electric vehicles, can be provided to organisations such as Sidbi and Nabard for refinancing, just like national housing banks, which refinance housing finance companies,” he said.

With regard to recovery, he said, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act needs some tweaking so that NBFCs can benefit from this.

Currently, he said, the limit under SARFAESI Act is ₹20 lakh which can be reduced.