Reserve Bank governor Shaktikanta Das meets private sector bankers

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

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

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

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

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

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

Of 21 state-owned banks, 11 are under PCA framework, which imposes lending and or restrictions on weak lenders. se 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.

State-run banks also want some easing in one-day default rm anunced in February 12 circular. 

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