New Delhi [India], September 3 (ANI): Finance Minister Nirmala Sitharaman on Thursday asked bankers to roll out loan resolution schemes by September 15 and COVID-19 related distress must not impact their assessment of borrowers’ creditworthiness.
She said lenders must immediately put in place board-approved policies for resolution, identifying eligible borrowers and reach out to them.
There should be a quick implementation of a sustained resolution plan by lenders for the revival of every viable business, said Sitharaman during a review meeting with heads of scheduled commercial banks and non-banking finance companies (NBFCs).
An official statement said the lenders assured that they are ready with their resolution policies, have started the process of identifying and reaching out to eligible borrowers and that they will comply with timelines stipulated by the Reserve Bank of India (RBI).
The Ministry of Finance has also been engaging with RBI to ensure that the lenders are assisted by RBI in the resolution process.
The Finance Minister also reviewed the progress made by various lenders under Emergency Credit Line Guarantee Scheme (ECLGS), Partial Credit Guarantee Scheme (PCGS) 2.0 and Sub-ordinate Debt Scheme announced as part of the Aatmanirbhar Bharat Abhiyaan.
She asked lenders to try and extend the maximum possible relief to borrowers before the festive season. An amount of Rs 1.58 lakh crore was sanctioned as on August 31 under ECLGS of which more than Rs 1.11 lakh crore has been disbursed.
Under PCGS 2.0, bonds and commercial papers (CPs) of Rs 25,055.5 crore have been approved for purchase by public sector banks, of which Rs 13,318.5 crore amounting to more than 53 per cent of the portfolio pertains to bonds/CPs rated below AA-minus.
The scheme has thus been a crucial intervention for lower-rated bonds/CPs.
Sitharaman appreciated the efforts of banks and NBFCs during the lockdown in effective implementation of the Pradhan Mantri Garib Kalyan Yojana and the Aatmanirbhar Bharat related measures. (ANI)
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