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NEW DELHI: Governor of the Reserve Bank of India (RBI) Shaktikanta Das held a meeting on Saturday with the heads of the banks and reviewed the economic situation and the implementation of various measures announced by him to reduce stress on the system financial in the midst of the COVID-19 crisis.
The meeting, which took place in two separate sessions via video conference, was attended by CEOs and CEOs of major public and private sector banks, the RBI said in a statement after the meeting.
In his opening remarks, the governor appreciated the banks’ efforts to guarantee normal to near-normal operations during the shutdown period.
During the meeting, among other things, the review of the current economic situation and the stability of the financial sector, among other things, were discussed.
Credit flows to different sectors of the economy, including liquidity to non-bank financial companies, microfinance institutions, home finance companies, mutual funds, etc. and post-closing credit flows, including the provision of working capital, with special emphasis on credit flows to MSMEs. deliberate
The implementation of the three-month moratorium on the payment of the loan installments announced by the RBI was also reviewed during the meeting.
Earlier this week, the Supreme Court ordered the RBI to ensure that its March 27 guidelines directing credit institutions to allow a three-month moratorium on all borrowers to be implemented in letter and spirit.
Monitoring of bank branches abroad was discussed in view of the slowdown in economies around the world, he added.
The Reserve Bank has announced several steps to alleviate the pressure facing borrowers, lenders and other entities, including mutual funds, and has promised to take more initiatives to address the developing situation.
The RBI has injected funds totaling 3.2 percent of GDP into the economy since the February 2020 monetary policy meeting to address the liquidity situation.
The RBI has been pushing banks to boost lending by lowering its key policy rate by 75 basis points to an 11-year low of 4.4 percent. In addition, it also reduced the reverse repurchase rate, a tool to control the money supply, to 3.75 percent to encourage banks to deploy surplus funds within the loan system.
The reverse reduction in the repurchase rate will discourage banks from parking cash with the RBI and will encourage them to lend to the economy.
The Indian economy may be on track for a rare quarterly contraction during April-June as economic activities have been halted due to the coronavirus blockade.
The government had previously presented a package of Rs 1.7 lakh crore of free food grains and cash to the poor to meet the challenges posed by the outbreak of the COVID-19 pandemic.
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The meeting, which took place in two separate sessions via video conference, was attended by CEOs and CEOs of major public and private sector banks, the RBI said in a statement after the meeting.
In his opening remarks, the governor appreciated the banks’ efforts to guarantee normal to near-normal operations during the shutdown period.
During the meeting, among other things, the review of the current economic situation and the stability of the financial sector, among other things, were discussed.
Credit flows to different sectors of the economy, including liquidity to non-bank financial companies, microfinance institutions, home finance companies, mutual funds, etc. and post-closing credit flows, including the provision of working capital, with special emphasis on credit flows to MSMEs. deliberate
The implementation of the three-month moratorium on the payment of the loan installments announced by the RBI was also reviewed during the meeting.
Earlier this week, the Supreme Court ordered the RBI to ensure that its March 27 guidelines directing credit institutions to allow a three-month moratorium on all borrowers to be implemented in letter and spirit.
Monitoring of bank branches abroad was discussed in view of the slowdown in economies around the world, he added.
The Reserve Bank has announced several steps to alleviate the pressure facing borrowers, lenders and other entities, including mutual funds, and has promised to take more initiatives to address the developing situation.
The RBI has injected funds totaling 3.2 percent of GDP into the economy since the February 2020 monetary policy meeting to address the liquidity situation.
The RBI has been pushing banks to boost lending by lowering its key policy rate by 75 basis points to an 11-year low of 4.4 percent. In addition, it also reduced the reverse repurchase rate, a tool to control the money supply, to 3.75 percent to encourage banks to deploy surplus funds within the loan system.
The reverse reduction in the repurchase rate will discourage banks from parking cash with the RBI and will encourage them to lend to the economy.
The Indian economy may be on track for a rare quarterly contraction during April-June as economic activities have been halted due to the coronavirus blockade.
The government had previously presented a package of Rs 1.7 lakh crore of free food grains and cash to the poor to meet the challenges posed by the outbreak of the COVID-19 pandemic.
