Nirmala Sitharaman to meet PSU bank chiefs on Friday; to review credit flow to prop up virus-hit economy – Firstpost

New Delhi: Finance Minister Nirmala Sitharaman will maintain a review assembly with CEOs of public sector banks (PSBs) on Friday to talk about numerous points, together with credit offtake, as a part of efforts to prop up the coronavirus-hit economy, sources mentioned.

The assembly was earlier scheduled on 11 May, however due to the stimulus package deal bulletins, it was deferred, they added.

The assembly, to be held by way of video-conferencing, will even take inventory of rate of interest transmission to debtors by banks and progress on moratorium on mortgage repayments, the sources mentioned.

Nirmala Sitharaman. Pic courtesy: CNBC-TV18

The RBI had on 27 March slashed the benchmark rate of interest by an enormous 75 foundation factors and likewise introduced a 3-month moratorium to be given by banks to present reduction to debtors whose revenue has been hit due to the lockdown.

Besides, CEOs of public sector monetary establishments will even be current on the assembly.

The assembly assumes significance in gentle of the over Rs 20 lakh crore complete financial package deal introduced for the economy reeling underneath the COVID-19 disaster.

The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday authorised extra funding of up to Rs three lakh crore at a concessional charge of 9.25 % via the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector hit laborious by the coronavirus disaster.

Earlier this month, RBI Governor Shaktikanta Das held a gathering with heads of each private and non-private sector banks to take inventory of the financial scenario and review implementation of assorted measures introduced by the central bank.

The deployment of extreme funds by banks underneath the reverse repo route may come up for dialogue on Friday, sources mentioned.

Besides, progress underneath the focused lengthy-time period repo operations (TLTRO) for the NBFC sector and microfinance establishments (MFIs), and sanctions underneath the COVID-19 emergency credit line will even be reviewed.

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