Download the all-new Republic app:

Published 21:20 IST, December 27th 2018

Reserve Bank governor Shaktikanta Das meets private sector bankers

Reserve Bank governor Shaktikanta Das on Thursday held meetings with top private sector lenders and discussed liquidity issues and the flow of credit to small and medium businesses, according to bankers.

Follow: Google News Icon
  • share
null | Image: self
Advertisement

Reserve Bank governor Shaktikanta Das on Thursday held meetings with top private sector lenders and discussed liquidity issues and the flow of credit to small and medium businesses, according to bankers.

This is the third meeting Das has had with the lenders, with the first two being with public sector banks, after he took charge on December 12 following the sudden the resignation of Urjit Patel on December 10 due to the differences with the government on a host of issues including those discussed on Thursday.

Advertisement

"There were discussions on the ways to improve the flow of credit to medium and small industries and also on the present liquidity situation," said a banker who attended the meeting which was also attended by the deputy governors and other top private sector lenders.

Following a default by Infrastructure Leasing & Financial Services (IL&FS) in September, liquidity situation in the system became too tight.

Advertisement

READ | WATCH: In First Briefing As RBI Governor, Shaktikanta Das Promises To Uphold Central Bank's Autonomy, Consult, And Resolve All Issues, However Contentious, Through Discussions

At the November 19 meeting of the central board of RBI, the central bank had announced the loan restructuring scheme for MSMEs with credit up to Rs 25 crore.

Advertisement

At the past two meetings held between RBI and state-run banks, Das had deliberated on the prompt correction action framework.

Of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders. These are Allahabad Bank, United Bank, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank, Indian Overseas Bank, Oriental Bank, Dena Bank and Bank of Maharashtra.

Advertisement

State-run banks also want some easing in the one-day default norm announced in the February 12 circular. 

READ | Here's Who Dr Subramanian Swamy Thinks Would Have Made A Better RBI Governor Than 'corrupt' Shaktikanta Das

21:20 IST, December 27th 2018