Mumbai: RBI Governor Shaktikanta Das asked banks Monday to remain watchful of the evolving situation and emphasised the importance of credit flow to sustain the nascent economic recovery amid rising coronavirus cases. Shaktikanta Das had a meeting with MD/CEOs of public sector banks and select private sector lenders. He also highlighted the recent policy measures taken by RBI to further support the ongoing recovery while preserving financial stability, the central bank said in a statement.
Das touched upon the importance of credit flows in sustaining the nascent economic recovery and advised banks to remain watchful of the evolving situation and continue taking measures proactively for maintaining their business continuity, sharpening business strategies and raising adequate capital for strengthening balance sheets.
“He (Das) also emphasised the need for banks to maintain a close vigil on the payments and other IT systems operated by banks and fortifying those for enhanced efficiency and resilience so as to offer seamless and uninterrupted customer service,” the RBI said.
Among other matters, progress in the implementation of COVID Resolution Framework, outlook on stresses assets and capital augmentation came up for discussion.
The liquidity scenario and monetary transmission, and credit flows to different sectors, including MSMEs, and retail, were also discussed during the meeting held through video-conferencing.
Deputy Governors MK Jain, M Rajeswar Rao and a few other senior officials of RBI also attended the meetings.
There are concerns that surging coronavirus cases and resulting localised restrictions might hamper cash flow and result in stressed assets.