In the midst of the rapidly increasing coronavirus cases, RBI Governor Shaktikanta Das urged banks to keep a close eye on the situation and highlighted the role of credit flow in sustaining the burgeoning economic recovery.
Das also highlighted recent policy steps taken by the RBI to help the ongoing recovery while maintaining financial stability in his meeting with MD/CEOs of public sector banks and select private-sector lenders, the central bank stated recently.
Das emphasised the significance of credit flows in sustaining the gradual economic recovery and advised banks to keep a close eye on the situation. The RBI also asked to continue taking constructive steps to ensure business stability, sharpen business strategies, and collect sufficient capital for strengthening balance sheets.
“He also highlighted the significance of banks keeping close tabs on their payments and other IT systems and fortifying them for improved productivity and resilience to provide smooth and uninterrupted customer service,” the RBI said.
Among the topics discussed were implementing the COVID Resolution Framework, the outlook on stressed properties, and capital augmentation.
During the video conference, the liquidity scenario and money transfer and credit flow to various sectors, including MSMEs and retail, were also addressed. The conferences were also visited by Deputy Governors M K Jain and M Rajeswar Rao and a few other senior RBI officials.
Concerns have been raised that an increase in coronavirus cases and the resulting localised restrictions could hamper cash flow and result in stressed properties.