FM Sitharaman tells PSU banks to roll out sectoral measures; suggests this to quickly transmit benefits

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Updated: May 23, 2020 11:14 AM

Nirmala SItharaman has asked the PSU banks to aim for a fully digital loan documentation process and to provide liquidity support of Rs 3 lakh crore through 20 per cent additional limit.

finance minister nirmala sitharaman, FM sitharaman press conference, economic package 2.0, Rs 20 lakh crore, psu banks, psb, public sector bankIn a review meeting with the heads of the PSU banks, FM Sitharaman urged them to utilise the sectoral measures announced as part of the Atmanirbhar Bharat package.

Finance Minister Nirmala Sitharaman asked the PSU banks to implement sector-specific measures to make the benefits of Rs 21 lakh crore economic package reach on the ground. In a review meeting with the heads of the PSU banks, FM Sitharaman urged them to utilise the sectoral measures announced as part of the Atmanirbhar Bharat package, which was rolled out in the wake of the coronavirus-led crisis. The public sector banks play an important role in transmitting the benefits to people and businesses in need, hence it becomes important that they keep their actions in-line with the newly announced policies and measures.

Nirmala Sitharaman has asked the PSU banks to aim for a fully digital loan documentation process and to provide liquidity support of Rs 3 lakh crore through 20 per cent additional limit for enterprises with loan exposure of less than Rs 25 crore and turnover of less than Rs 100 crore. The public sector banks have also been asked to prioritise sanctions under emergency credit, reassessment of working capital, and guaranteed credit line in tier-II cities in each state and Union Territories by June 1, 2020, according to the Department of Financial Services.

Also Read: Faster income tax refunds: Govt returned this much money in one week after FM Sitharaman’s address

The minister yesterday reviewed loan sanction pace, concerns of borrowers and bankers, and interest rate transmission and operationalisation of the Atma Nirbhar Bharat package. She added that the agriculture sector ensured India’s food security during the lockdown, thus to support farmers, KCC saturation drives have issued 34.88 lakh fresh cards with Rs 30,000 crore of credit limit.

Meanwhile, to provide cushion to the distressed economy, the PSU banks have already sanctioned Rs 1.22 lakh crore to 92 per cent of eligible MSMEs and other companies under COVID-19 related emergency credit products & enhanced working capital. FM Sitharaman further said that undeterred by the coronavirus-led disruption, the public sector banks remain at the forefront in the fight against it and 97 per cent bank branches and 80 per cent ATMs remained operational throughout the lockdown, which shows that they are committed to providing seamless banking in every circumstance.

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