PM holds meeting with top bankers, NBFCs on economic revival amid Covid-19 crisis

Prime Minister Narendra Modi interacted with stakeholders from Banks and Non-Banking Financial Companies to discuss and deliberate on a vision and road map for the future and impressed upon them the need to push lending towards the productive sectors for revival of the economy hit by the COVID-19 pandemic.

During the interaction, the crucial role of the financial and banking system of supporting growth was discussed. It was noted that the small entrepreneurs, Self- Help Groups, farmers should be motivated to use institutional credit to meet their credit needs and grow.

Each bank needs to introspect and take a re-look at its practices to ensure stable credit growth. Banks should not treat all proposals with the same yardstick and need to distinguish and identify bankable proposals and to ensure that they get access to funding on their merit and do not suffer in the name of past Non-Performing Assets.

It was emphasized that the government is firmly behind the banking system. The government is ready to take any steps necessary to support it and promote its growth.

Banks should adopt fintech like centralized data platforms, digital documentation and collaborative use of information to move towards digital acquisition of customers. It will help increase credit penetration, increase ease for customers, lower costs for banks and also reduce frauds.

India has built a robust, low-cost infrastructure which enables every Indian to undertake digital transactions of any size with great ease. Banks and Financial Institutions should actively promote the use of RUPAY and UPI amongst its customers.

During the meeting, the progress of schemes like emergency credit line for MSME, additional KCC cards, liquidity window for NBFC and MFI was also reviewed. While it was noted that significant progress has been made in most schemes, banks need to be proactive and actively engage with the intended beneficiaries to ensure that the credit support reaches them in a timely manner during this period of crisis.