Reserve Bank of India Governor Shaktikanta Das on Wednesday asked banks to strengthen their lending capacity by raising capital, the central bank said in a statement. He also asked the banking sector to remain vigilant and strengthen their resilience.
Earlier, Das held a two-day meeting on December 22 and 23, with managing directors and chief executive officers of public sector banks and a few private lenders.
“With specific reference to the financial sector, he [Das] highlighted the measures taken by the RBI since the onset of the pandemic to stabilise the economy and to ensure financial stability,” the central bank’s statement said. The release further said credit flow to different sectors, including stressed segments and Micro, Small and Medium Enterprises, was also discussed. The meeting was also attended by deputy governors of the central bank.
Other issues which came up for discussion included progress in the implementation of resolution framework for Covid-related stressed assets, progress in identifying districts that are fully digitally enabled, strengthening and enhancing the capacity and efficiency of Information Technology infrastructure and systems and improving grievance redress mechanisms.