FM holds review meeting with heads of Scheduled Commercial Banks & NBFCs

Union Minister for Finance & Corporate Affairs Nirmala Sitharaman held a review meeting with the heads of Scheduled Commercial Banks and NBFCs through Video Conferencing today to review their state of preparedness for implementation of the loans resolution framework for COVID-19 related stress.

During the meeting, Smt. Sitharaman impressed upon the lenders that as and when moratorium on loan repayments is lifted, borrowers must be given support and COVID-19 related distress must not impact the lenders’ assessment of their creditworthiness.
During her interaction, the Finance Minister focused on —

• Lenders immediately putting in place Board-approved policy for resolution, identifying eligible borrowers and reaching out to them

• Quick implementation of a sustained resolution plan by lenders for revival of every viable business

The Finance Minister also reviewed the progress made by various lenders under ECLGS, PCGS 2.0 and Sub-ordinate Debt Schemes announced as part of the ‘Aatmnirbhar Bharat Abhiyaan’, and advised lenders to try and extend the maximum possible relief to borrowers before the festive season.

An amount of Rs. 1.58 lakh crore has been sanctioned as on 31.8.2020 under ECLGS, out of which more than Rs. 1.11 lakh crore has also been disbursed.

Leave a Comment

Your email address will not be published.