New delhi sources stated that after reviewing the health of the public sector banks (PSBs) with their chiefs, Finance Minister Nirmala Sitharaman on Thursday said the Centre has asked all PSBs to lend more. Meanwhile in a move provide more credit to borrowers, including home buyers and farmers, she said PSBs would hold ‘shamiana meetings’ with non-banking financial companies (NBFCs) and retail borrowers in 400 districts beginning next week September 29 in 200 districts, and another 200 districts will be covered between October 10 and October 15”.
Reportedly “Schedule banks will now show that they are indeed pushing liquidity to the NBFCs or directly to the customer”. She added “The idea behind this move is to ensure maximum credit disbursal during the festive season. diwali, which falls in October this year, is considered as the biggest shopping season of the country”.
Moreover during the public meetings, the government said that the credit would be provided for retail, agriculture, MSME and housing sector, among others. Perhaps the minister also announced that banks have been asked not to declare any stressed MSME loan as NPA till March 31, 2020.
