Mumbai, May 26, 2021: Reserve Bank of India (RBI) Governor Shaktikanta Das has asked the Chiefs of select private banks to jump credit flows to retail and business on May 25 meeting.
Also, he called on them to implement the measures announced by the Central Bank on May 5.
At a video conference, Governor had a meeting with Deputy Governors MK Jain, M Rajeshwar Rao, Michael D. Patra & T Rabi Sankar, stressing the crucial role played by the PSUs as important stakeholders. He also impressed upon the banks to quickly and swiftly implement the measures announced on May 5, a statement from the website.
In Tuesday’s meeting, RBI Governor advises the banks to establish continuity in the provision of financial services, credit facilities, individuals & businesses in front of pandemic challenges. Also commended them to continue to strengthen the balance sheets proactively.
Das also discussed the current economic situation and the state of the banking sector. Credit will continue flowing to small borrowers, MSMEs, and how much the implementation of COVID Resolution Framework 1.0, announced on August 2020, has advanced.
Monetary policy transmission and the liquidity scenario were also discussed. The monetary policy committee has cut rates by 250 basis points (bps) since February 2019 to support growth.