FM Nirmala Sitharaman tells banks to improve interest rate transmission

Finance Minister Nirmala Sitharaman told state-owned banks on Tuesday to hold board-level talks and go for further cuts in interest rates on loans in a bid to spur economic activity.
 

“The FM told bankers that interest rate transmission is not happening as expected, and asked them to take up the matter at board level. The government was sceptical about a slower monetary rate transmission by public sector banks (PSBs) till now,” a person who was present in the meeting said, requesting anonymity.
 

In the meeting with PSB chief executives, the FM also asked them to expedite the sanctioning of loans