Union Minister for Finance & Corporate Affairs Nirmala Sitharaman held a review meeting with the heads of Scheduled Commercial Banks and NBFCs through Video Conferencing today to review their state of preparedness for implementation of the loans resolution framework for COVID-19 related stress. During the meeting, Sitharaman impressed upon the lenders that as and when moratorium on loan repayments is lifted, borrowers must be given support and COVID-19 related distress must not impact the lenders' assessment of their creditworthiness. During her interaction, the Finance Minister focused on -
Lenders immediately putting in place Board-approved policy for resolution, identifying eligible borrowers and reaching out to them.Quick implementation of a sustained resolution plan by lenders for revival of every viable business. The Finance Minister also emphasised that Resolution schemes must be rolled out by lenders by 15th September, 2020, and a sustained media campaign to create awareness be carried out thereafter. She advised lenders to ensure that regularly updated FAQs on the resolution framework are uploaded on their websites in Hindi, English and regional languages, and also circulated to their offices and branches.
The lenders assured that they are ready with their resolution policies, have started the process of identifying and reaching out to eligible borrowers, and that they will comply with the timelines stipulated by the Reserve Bank of India (RBI).
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