The Governor, Reserve Bank of India (RBI) held meetings with the MD/CEOs of Public Sector Banks and select Private Sector Banks on December 22 and 23, 2020 respectively through video conference. The meetings were attended by Deputy Governors, RBI.
In his opening remarks, the Governor touched upon the current economic situation and emphasized the importance of the banking sector in supporting the ongoing revival in economic activities. With specific reference to the financial sector, he highlighted the measures taken by the RBI since the onset of the pandemic to stabilize the economy and to ensure financial stability. With regard to the banking sector, he reiterated the need for banks to remain vigilant and take proactive measures to strengthen their resilience and lending capacity by raising capital and making provisions proactively.
Among other matters, the following issues were discussed in the meeting.
Assessment of the current economic situation and outlook;
Monetary Policy Transmission and liquidity situation;
Credit flows to different sectors of the economy including stressed sectors and MSMEs;
Progress in the implementation of Resolution Framework for COVID-related stressed assets;
Progress in making the identified districts in States/UTs 100% digitally enabled;
Strengthening and enhancing the capacity and efficiency of the IT infrastructure and IT systems in banks; and
Focused attention on improving grievance redress mechanisms in banks.
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