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RBI Guv Discusses Credit Flow, Rate Cut Transmission with Bank MDs

In Business
December 23, 2020

Reserve Bank Governor Shaktikanta Das continued discussions with MDs and CEOs of both public and private sector banks on Wednesday.

The discussions, which began Tuesday, included the assessment of the current economic situation and outlook, monetary policy transmission, credit flows to different sectors of the economy including stressed sectors and MSMEs, among other matters.

An RBI statement said that in his opening remarks, the Governor touched upon the current economic situation and emphasised the importance of the banking sector in supporting the ongoing revival in economic activities.

With regard to the banking sector, Das “reiterated the need for banks to remain vigilant and take proactive measures to strengthen their resilience and lending capacity by raising capital and making provisions proactively”.

The virtual meeting, also attended by the Deputy Governors of the central bank, also discussed progress in the implementation of Resolution Framework for Covid-related stressed assets and progress in making the identified districts in states and UTs 100 per cent digitally enabled among other issues.