Mumbai, The Reserve Bank of India (RBI) on Saturday reviewed the credit flow situation from the banking sector to various industries and the implantation of relief measures which it had earlier announced to mitigate the economic fallout of the Covid-19 outbreak.
Accordingly, RBI Governor Shaktikanta Das held meetings with the top management executives of both public and private sector banks via video conferencing.
The meetings with MDs and CEOs of public and private sector banks were also attended by deputy governors and other senior RBI officials.
“In his opening remarks, the Governor appreciated the efforts of the banks in ensuring normal to near normal operations during the lockdown period,” the RBI said in a statement, adding, “Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, micro finance institutions, housing finance companies, mutual funds, etc.”
Besides, post-lockdown credit flows, including provision of working capital, with special focus on credit flows to MSMEs were also discussed.
Furthermore, implementation of the three month-long moratorium on repayment of loan instalments and monitoring of overseas branches of banks in view of the slowdown in economies across the globe were also discussed.
The Covid-19 outbreak and the subsequent lockdown has unleashed a massive economic upheaval. To contain the fallout, the Reserve Bank has taken proactive steps.
Additionally, the RBI has also given relief to the mutual fund and the NBFC industry, besides reducing the repo and reserve repo rate and injecting liquidity via targeted long-term repo operation (TLTRO).