Banks have agreed to review the lending rates: Finance Ministry
New Delhi, Aug 6 (KNN) The finance ministry has said that the banks have agreed on taking steps to review the lending rates to the borrower’s benefits of reduction in the policy rate of the Reserve Bank of India (RBI).
Monetary policy has been made easy to many folds by the RBI from December 2018. Policy outlook has been changed to indulgent and policy rates being cut by 75 basis points (bps), stated an official release.
“Heads of various public sector banks (PSBs) and the private lenders like Kotak Mahindra Bank, ICICI Bank, Axis Bank chaired a meeting with Finance Minister Nirmala Sitharaman. A number of key issues were discussed related to the Financial Services Secretary Rajiv Kumar said a range of issues connecting to credit growth, micro, small and medium and enterprises (MSMEs),” said Rajiv Kumar, Financial Services Secretary.
"Motive of this meeting is to note everything and impetus the credit growth, especially in the automobile, agriculture and the MSMEs sector. To increase the lending and looking the 'co-origination' with the HFCs and NBFCs where the banks have the availability of credit," Kumar said.
The FM talked on issues of increase in public shareholding in listed companies from 25 percent to 30 percent. Levy of surcharge on super riches increase in public shareholding in listed companies from 25 percent to 30 percent.
Further, Sitharaman said, “On the matter of funding to MSMEs and non-banking financial company (NBFC) sectors, the subject was discussed on improvement of lending to these businesses."
RBI Deputy Governor N S Vishwanathan was also present in the meeting where he said, the banking system has durable and sufficient liquidity currently.
The finance minister will also chair a meeting with the representatives of MSMEs and the MSME Union Minister, Nitin Gadkari today. It would be followed by the discussion with the automobile and its component manufactures on Wednesday.
On Thursday, a meeting will be held with the industries. On Friday, meeting with the markets (stakeholders) will be held. On Saturday, the meeting will end up with homebuyers and real estate participants.
"It is the need to lift these sectors which are important for economic growth. Till Sunday, these interactive sessions will be organized. We will continue to have these interactive sessions till Sunday and then after that, we will arrange all these based upon the feedback that we will receive," said, Rajiv Kumar.