Policy

RBI top brass discuss credit flows with heads of small finance banks

Our Bureau Mumbai | Updated on April 30, 2021

Shaktikanta Das also told banks to maintain their business resilience   -  istock.com/powerofforever

Governor stresses on smooth grievance redressal mechanism

The top brass of the Reserve Bank of India (RBI) on Friday discussed credit flows to different segments of borrowers and outlook on potential stress on banks’ balance sheets with the chiefs of small finance banks (SFBs).

‘Supervisory expectations’

The meeting assumes importance as customers of SFBs, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities, have have been impacted in the first and the ongoing second wave of the Covid-19 pandemic. Some of the other issues that were discussed in the video-conference include assessment of current economic situation and the liquidity scenario. In his opening remarks, RBI Governor Shaktikanta Das recognised the important role the SFBs played in delivering credit and other financial services to individuals and small businesses.

He also emphasised the supervisory expectations in terms of maintaining their business resilience and managing risks prudently. Das advised the banks to pay focussed attention on improving customer grievance redress process while also strengthening IT systems in the interest of the banks and their customers.

The RBI Governor had met with the MDs/CEOs of public sector banks and select private sector banks on April 12. In this meeting, he had advised the bank chiefs to remain watchful of the evolving situation amid the pandemic. Das asked them to continue taking measures proactively for maintaining their business continuity, sharpening business strategies and raising adequate capital for strengthening balance-sheets.

Published on April 30, 2021

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