Liquidity in Economy is Not a Problem, Says UCO Bank Chief

Kolkata: City-based UCO Bank said on Thursday that the liquidity in the economy is not a problem and all announcements made by the RBI and the government to tide over the present COVID-19 crisis are being implemented by the lender. Also Read – PSU Firms, Banks Taking All Precautions to Ward Off COVID-19: Officials

The bank has also onboarded several fin-tech companies to verify the details of loan applications, UCO Bank MD and CEO A K Goel said. Also Read – Bengaluru: Fire Breaks Out in UCO Bank Building at MG Road, Many Feared Trapped

“There is enough liquidity and it is not a problem. UCO Bank has implemented all the announcements made by RBI and the government during these challenging times,” Goel said at a webinar organised by MCCI. Also Read – Yash Birla Declared ‘Wilful Defaulter’ by UCO Bank

The Rs 20 lakh crore stimulus package includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.

Goel said the guaranteed emergency credit line is being given at an interest rate of 7.5 per cent to all existing customers who are seeking to avail it.

For the small and micro enterprises, the external benchmark rate has been linked to the repo rate which ensures transmission when the RBI alters it.

Regarding moratorium on repayment of loans, he said that the RBI has extended it for three months till August 2020 and it is up to the customers whether they will avail it or not.