The Reserve Bank of India (RBI) held an important meeting with public sector banks on Saturday amid worrying reports on financial health of the banking sector of the country, one after another, amid a nationwide lockdown. In this meeting, along with saving the economy of the country from the effect of Kovid-19, the future policy of banks was also discussed. Broadly, the banks were instructed that the government has started the path to get out of the lockdown and banks should be ready to play a big role. In this meeting, led by RBI Governor Dr. Shaktikanta Das, in addition to providing adequate loans to small and medium industries, all options to improve the situation of non-banking financial companies (NBFCs) have also been discussed in detail.

For your information, let us tell you that in the meeting, RBI Governor Shaktikanta Das reminded the commercial banks that they have to play an important role in draining the economy from the current situation. So, in the worsening situation on behalf of the banks, the situation of the trapped debt was told openly. Banks have been told by the RBI that its announcement to stop the payment of three-month term loan should be followed in the right perspective. In this context, a reference was also made to the Supreme Court's directive, in which it has been said that the benefit of the said rule should be given to all sections of society equally.

Regarding this matter, it has been told by the RBI that after discussing every aspect related to the current economic situation, the issue of operational activities of Indian banks arose. In the recent four years, the public sector banks have stopped their considerable overseas operations, despite this, around 140 branches are still abroad. Right now, one of the concerns due to the global recession is that foreign branches of Indian banks may suffer losses. Banks have been asked to monitor their foreign branches.

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