RBI governor meets bankers over rate transmission, stressed assets

Touches upon current economic situation, emphasises banking sector's importance in supporting ongoing revival in economic activities

Reserve Bank of India (RBI) governor Shaktikanta Das and deputy governors met the managing directors and chief executives of public and select private sector banks on Tuesday and Wednesday, to discuss, among other things, transmission of rates and progress in the implementation of resolution framework for Covid-related stressed assets.  

The RBI governor touched upon the current economic situation and emphasised the importance of the banking sector in supporting the ongoing revival in economic activities. He highlighted the measures taken by the RBI to stabilise the economy and to ensure financial stability during Covid.  

“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," RBI said in a statement. 

The top RBI officials discussed current economic situation and outlook, monetary policy transmission and liquidity situation. Credit flows to different sectors of the economy including stressed sectors and MSMEs were also discussed. Strengthening and enhancing the capacity and efficiency of the information technology infrastructure and IT systems in banks; and focussed attention on improving grievance redressal mechanism in banks were also discussed.