RBI guv's diktat to private banks

RBI Governor Shaktikanta Das on Tuesday asked private sector banks to ensure continuity in the provision of various financial services, including credit facilities to individuals and businesses, in the face of challenges brought on by the pandemic.

Earlier this month, the governor had held a similar meeting with MD and CEOs of public sector banks.

During the meeting with the MD and CEOs of select private sector banks, Das also impressed upon the banks to quickly and swiftly implement the measures announced by the RBI on May 5, 2021, in right earnest.

On May 5, the governor had announced a slew of measures, including term liquidity facility of Rs 50,000 crore to ease access to emergency health services.

They were also aimed to further improve lending to the MSME sector, restructuring of loans, and rationalisation of compliance to KYC, in wake of the second wave of the COVID-19 pandemic.

"He (Das) also advised the banks to ensure continuity in provision of various financial services, including credit facilities to individuals and businesses, in the face of challenges brought on by the pandemic," the RBI said in a statement.

The governor also urged them to continue focussing on efforts to further strengthen their balance sheets proactively.

During the meeting held through video conference, other matters that were discussed included assessment of the current economic situation and the state of the banking sector; credit flows to different segments of the economy, particularly to small borrowers, and MSME.

According to the statement, progress in the implementation of the COVID-19 Resolution Framework 1.0; monetary policy transmission and liquidity scenario; and Implementation of various COVID-19-related policy measures taken by RBI, also came up for discussion.

The meeting was also attended by Deputy Governors M K Jain, M Rajeshwar Rao, Michael D Patra and T Rabi Sankar.

Photograph: Francis Mascarenhas/Reuters