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Finance Minister Nirmala Sitharaman will hold a review meeting with chief executives of public sector banks on Monday to discuss various issues, including credit loss, as part of efforts to shore up the crisis-hit Indian economy. of the coronavirus.
The meeting, to be held via video conference, will also assess the transmission of interest rate cuts to borrowers and the progress of the moratorium on loan repayments, people aware of the matter said.
On March 27, the Reserve Bank of India reduced the repurchase rate by 75 basis points and announced a three-month loan repayment moratorium on borrowers affected by the coronavirus blockade.
The over-deployment of funds by banks under the reverse repo route can also be discussed on Monday, the people quoted said. The progress of long-term repo operations for the NBFC sector and microfinance institutions, and penalties under the Covid-19 emergency credit line will also be reviewed.
Under the emergency line of credit, borrowers can take advantage of up to 10 percent of existing fund-based working capital limits, subject to a limit of Rs 200 million. Public sector banks have sanctioned Rs 42 billion in loans to the MSME sector and companies since the start of the blockade.
