Money & Banking

PM to meet bank, NBFC chiefs on Wednesday

KR.Srivats New Delhi | Updated on July 28, 2020

Prime Minister Narendra Modi   -  PTI

Prime Minister Narendra Modi will meet the CEOs of top public sector and and private sector banks besides heads of a few NBFCs on Wednesday.

Top officials of the Finance Ministry and Corporate Affairs Ministry are also expected to attend this virtual meeting.

During the virtual meeting, thePrime Minister is expected to review the progress madein the Aatma Nirbhar Bharat stimulus package that was unveiled after the Covid outbreak. Ground level issues are expected to be discussed on schemes such as the ₹3-lakh crore Emergency Credit Line Guarantee Scheme to support MSMEs impacted by Covid.

This meeting is significant as it comes at a time when the government is looking to expand the beneficiaries of the ECLGS scheme. There is also a proposal to float a Development Financial Institution ( DFI) and a credit enhancement company. This could be discussed at the meeting, sources said.

In the wake of Covid-induced lockdown, several players in the financial sector, especially the small- and medium-sized NBFCs, are faced with stress and liquidity issues. The government may look at coming to the rescue of such NBFCs with more measures, it is learnt.

Already, top financial sector honchos have conveyed to the Reserve Bank of India (RBI) that there is a need for the central bank to allow one-time restructuring of assets. A plea has also been made that the RBI should not look at extending the moratorium.

Published on July 28, 2020

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