Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday asked heads of select private sector banks to boost credit flows to retail and small business borrowers and quickly implement all the measures announced by the apex bank on May 5 as part of Covid-relief measures.
Das met met the MD & CEOs of select Private Sector Banks through video conference in a meeting that was also attended by Deputy Governors M. K. Jain, M. Rajeshwar Rao, Michael D. Patra and T. Rabi Sankar.
In his opening remarks, the Governor recognised the crucial role played by the private sector banks as important stakeholders in the Indian banking sector.
He impressed upon the banks to quickly and swiftly implement the measures announced by RBI on May 5, 2021 in right earnest. He also advised the banks to ensure continuity in provision of various financial services including credit facilities to individuals and businesses in the face of challenges brought on by the pandemic.
On May 5, the RBI governor had announced a slew of measures to counter the impact of the second wave of the Covid-19 pandemic on banks and financial institutions as also their borrowers.
During the meeting, the RBI governor urged bankers to continue focusing on efforts to further strengthen their balance sheets proactively.
The meeting also took time to make an assessment of current economic situation and the state of the banking sector. It also focused on credit flows to different segments of the economy, particularly to small borrowers, MSMEs.
Das also heard the banks over their progress in the implementation of Covid Resolution Framework 1.0, Monetary policy transmission and liquidity scenario; and Implementation of various Covid-related policy measures taken by RBI.