RBI Governor Shaktikanta Das has asked banks to take proactive measures to strengthen their resilience and lending capacity by raising capital, the central bank mentioned in a statement on Wednesday.
During a two-day meeting with heads of banks, which includes the private sector lenders, the governor emphasised on the want to stay vigilant and make provisions against undesirable loans proactively.
Das had held related meetings in May as properly. He had also met with representatives of other economic institutions like NBFCs and microfinance lenders.
The RBI, in its statement, mentioned Das held meetings with the MD & CEOs of public sector banks and pick private sector lenders on Tuesday and Wednesday, respectively, via video conferencing.
The meetings have been also attended by the RBI’s deputy governors.
During the meetings, Das touched upon the present financial scenario and emphasised on the value of the banking sector in supporting the ongoing revival in financial activities, RBI mentioned.
With certain reference to the economic sector, he highlighted the measures taken by the central bank considering the fact that the onset of the pandemic to stabilise the economy and guarantee economic stability.
“With regard to the banking sector, he 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 RBI mentioned.
Assessment of the present financial scenario and outlook and monetary policy transmission and liquidity scenario also came up for deliberations.
The release additional mentioned credit flow to unique sectors, which includes stressed segments and MSMEs, was also discussed.
Other concerns which came up for discussion incorporated progress in the implementation of resolution framework for COVID-connected stressed assets progress in generating the identified districts in states/UTs one hundred per cent digitally enabled strengthening and enhancing the capacity and efficiency of IT infrastructure and systems and enhancing grievance redress mechanisms.