FM to discuss credit flow to NBFCs, businesses with banks on Monday

Finance Minister Nirmala Sitharaman is set to hold a review meeting with state-owned banks on Monday (May 11) to take updates on credit flow to industries at a time when economic activities have started to resume.

The discussions will focus on banks' reluctance to lend to non-banking financial companies (NBFCs) and to get a sense from the lenders about their decision to park huge surplus funds with the banking regulator.

The FM will take stock of the credit sanction and disbursement by the banks since March 1, 2020, and the Covid-19-related emergency credit lines opened by the lenders.

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