April 20 plan: Govt to meet with lenders on revival of economic activity

Action plan will have two phases: one for lockdown period when the economy activities resume, from April 20 to May 3, and the second after the lockdown period is over

The government is set to hold a meeting with chief executives of public sector banks and other lending institutions on Thursday to draw an action plan to offer financial support to economic activities that will restart on April 20.

The action plan will have two phases: one for the lockdown period when the economy activities resume, from April 20 to May 3, and the second after the lockdown period is over.

The meeting, which will be chaired by financial services secretary Debashish Panda over video conference, will be attended by the chief executives of all PSBs along with the management of National Bank for Agriculture and Rural Development, National Housing Bank and Small Industries Development Bank of India.

The government is set to discuss "timely origination, sanction and disbursement of fund-based and non-fund based credit, clearing of payments and supply of cash for activities allowed to to operate from April 20.

The government on Wednesday allowed resumption of certain economic activities in areas where there are no Covid-19 cases. These activities will include agriculture and horticulture, construction, industrial establishments, fisheries, plantation, MGNREGA works, among others.

The government will ask banks to ensure adequate stock of cash in ATMs across the country and sufficient supply of cash to business correspondents.

Another action plan will be drawn through which the government will discuss cash transfers under Pradhan Mantri Garib Kalyan Yojana, monthly wages and credit growth after May 3.

This is the second such meeting being held by the finance ministry with bank executives. In a meeting with PSB chiefs on Monday, the finance ministry had asked them to extend all possible help to all sectors of the economy, according to the Press Trust of India.