Banks Going to be Catalyst For Economic Revival at This Crucial Corona Time, Says Sitharaman

New Delhi: Looking at the current economic crisis caused by the coronavirus lockdown, Union Finance Minister Nirmala Sitharaman on Wednesday said banks play a crucial role at this time as these financial institutions are going to be catalyst for economic revival. Also Read – Will Take up GST Cut Demand With FM Sitharaman And PM Modi, Says Javadekar

While holding a review meeting to take stock of the economic situation, Sitharaman said the banks at this moment also need to introspect their core businesses. Also Read – Nirmala Sitharaman to Review Implementation of Resolution Framework For COVID-related Stress

On Thursday, Sitharaman urged all banks to roll out resolution schemes for Covid-related stress by September 15. Also Read – Centre Writes to States Suggesting Options of Borrowing Money to Make up For GST Shortfall

During her interaction with the heads of scheduled commercial banks and NBFCs through a video conference, Sitharaman focused on lenders immediately putting in place board-approved policy for resolution, identifying eligible borrowers and reaching out to them.

She also called for quick implementation of a sustained resolution plan by lenders for revival of every viable business.

During the meeting, the finance minister told the lenders that as and when moratorium on loan repayments is lifted, borrowers must be given support and Covid-19 related distress must not impact the lenders’ assessment of their credit-worthiness.

Further, she also called for a sustained media campaign to create awareness among the borrowers for the resolution scheme. She advised lenders to ensure that regularly updated FAQs on the resolution framework are uploaded on their websites in Hindi, English and regional languages, and also circulated to their offices and branches.