RBI Governor meets CEOs and CEOs in public and private sectors during video conference

KOLKATA: Reserve Bank of India said it held meetings with top executives in major public and private sectors on Saturday to discuss the issues of credit flows, liquidity issues for non-bank finance companies, including microfinance firms, and the implementation of three months moratorium when repaying loans.

governor Shaktikanta Das chaired the meetings, which were also attended by vice-chairmen. Credit flows after locking with a special focus on credit flows to MSMEs have also been discussed.

In its publication on Saturday, ET had emphasized that the RBI would meet the nation’s top bankers. The meeting was convened a few days after the chief Court asked the bank regulator to ensure that every borrower benefits from the moratorium on payments. Some major banks have denied moratorium on payments to non-bank providers, though the RBI created an opportunity to extend the repayment period.

The RBI has also taken several steps to pump money into the system, but smaller and medium-sized NBFCs and microfinance firms said they were left out.

They have also been a dip in credit uptake as the economy stops in the middle of closing. In the fortnight ending April 10, the banks ’accumulated non-food credits shrank by Rs 33872 crore to Rs 102.9 lakh crore.

“The low credit payment is not due to risk aversion,” State Bank of India Chairman Rajnish Kumar Later said in an interview to ET Now. He said credit delivery is a factor in how fast the economy is recovering and demand is being generated.

The RBI has also reviewed India’s current financial situation and the operation of banks ’overseas branches in light of the slowdown in economies across the globe.

“Credit flows to various sectors of the economy, including liquidity for non-banking financial companies, microfinance institutions, housing finance companies and mutual funds,” were also discussed.

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