Shaktikanta Das meets PSB chiefs over resolution of stressed assets

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Published: July 20, 2019 1:41:53 AM

Recent initiatives to address issues relating to NBFCs and the role banks can play in mitigating lingering concerns were also part of the discussions.

The ‘less than desired’ level of transmission of monetary policy rates was also part of the discussion that was attended by the chief executive of the Indian Banks’ Association, the RBI said in a note.

Reserve Bank of India governor Shaktikanta Das on Friday met the chief executive officers of state-run banks regarding resolution of stressed assets. The other point that was discussed pertained to improving recovery efforts under the revised framework dated June 7, 2019.

The ‘less than desired’ level of transmission of monetary policy rates was also part of the discussion that was attended by the chief executive of the Indian Banks’ Association, the RBI said in a note.

Other issues discussed include credit and deposit growth on the back of a slowing economy, credit flow to needy sectors while following prudent lending, robust risk assessment and monitoring standards and strengthening of the internal control mechanism for improved fraud risk management.

Recent initiatives to address issues relating to NBFCs and the role banks can play in mitigating lingering concerns were also part of the discussions.

Das is also believed to have underlined the importance of expanding and deepening digital payments ecosystem in line with the recommendations of the Report of the Committee on Deepening of Digital Payments, chaired by Nandan Nilekani and RBI’s own Payment System Vision Document 2021.

“In this context, on the suggestion of the governor, it was agreed that banks will identify one district in each state to make it 100% digitally enabled within a timeframe of one year in close coordination and collaboration with all stakeholders, including SLBCs, state governments, regional offices of RBI, etc,” the note read.

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