(Kajal Singh, Intern journalist):
New Delhi: The Reserve Bank of India (RBI) held an important meeting with state-run banks on Saturday amid worrying reports on financial health of the country’s banking sector.
In this meeting, along with saving t
The country’s economy from the impact of Covid-19, the future policy of banks was also discussed. Broadly, the banks were instructed that the government has started the path out of the lockdown and banks should be ready to play a larger role. In this meeting, led by RBI Governor Dr. Shaktikanta Das, in addition to providing adequate loans to small and medium industries, all options to improve the situation of non-banking financial companies (NBFCs) have been discussed in detail.
In the meeting, RBI Governor Shaktikanta Das reminded the commercial banks that they have to play an important role in draining the economy from the current situation. So banks were also openly informed about the condition of the loans stuck in the worsening situation. Banks have been told by RBI that its declaration to stop the payment of three-month term loan should be followed in the right perspective. In this context, the reference of the Supreme Court’s instruction was also mentioned, in which it has been said that the benefit of the said rule should be given equally to all sections of the society.
It has been told by RBI that after discussing every aspect related to the current economic situation, the issue of operational activities of Indian banks arose.
Despite the fact that public sector banks have shut down their considerable overseas operations in the recent four years, about 140 branches are still abroad. Right now one of the concerns due to the global recession is that foreign branches of Indian banks may suffer losses. Banks have been asked to monitor their overseas branches.
Das specifically urged that now that the national lockdown is being gradually eliminated, the role of banks becomes very important. A large number of people will come forward to take loans. Especially small and medium industries will need working capitals. In order to meet all these needs, the central bank has made several arrangements in the last one month.