Keeping in mind the convenience of retail and commercial borrowers, the RBI governor asked to maintain credit flow from private banks. During this, he also praised the work of private banks.
Reserve Bank of India (RBI) Governor Shaktikanta Das has given relief to the borrowers during the Corona period. The governor asked the heads of select private banks to encourage credit flow to retail and commercial borrowers. Also, increase other financial care given to them so that people do not face any kind of problem. He also asked banks to implement the measures announced by the central bank on 5 May.
RBI Governor said this through video conference. Deputy Governors MK Jain, M Rajeshwar Rao, Michael D. Patra and T Rabi Shankar etc. were present during this period. Due to this, on May 19, the top officials of RBI had a similar meeting with senior officials of public sector banks.
The RBI issued a statement on its website saying, “Private sector banks have played an important role as important stakeholders in the Indian banking sector. He has greatly influenced the measures announced by RBI on May 5, 2021 by implementing them properly and speedily. ”
At Tuesday’s meeting, Das advised banks to ensure continuity in the provision of financial services, including credit facilities, to individuals and businesses to meet the challenges faced by the epidemic. The RBI governor also appealed to banks to further strengthen their balance sheets. It may be noted that on 5 May, RBI allowed banks to use 100 per cent of the floating provisions and countercyclical provisioning buffers kept by them till 31 December 2020 to make specific provisions for bad loans. Banks will be able to avail this benefit by 31 March 2022 with immediate effect.
