Banks to organise loan melas for NBFCs and customers in 400 districts: FM

The idea is to push credit in RAM (Retail, Agriculture & MSME) customers. Mumbai: Finance Minister Nirmala Sitharaman on Thursday said the banks will organise credit "Shamiana meetings" for customers and NBFCs across 400 districts in the next 25 days, in an attempt to boost liquidity in the system.

Sitharaman said banks will organise these open house meetings in 200 districts in the country till September 29.

She also announced that similar meetings will be organised in the next 200 districts from October 1 to October 15.

“Don’t want banks to only recycle loans with existing customers, banks will be encouraged to include new retail customers for lending,” she said at a press briefing in New Delhi.

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The idea is to push credit in RAM (Retail, Agriculture & MSME) customers.

Minister of State for Finance, Anurag Thakur will be incharge of ensuring these meetings are happened with due presence of respective MP & Council of Ministers.

RBIs existing provision of MSME stressed assets not to be declared NPA were not recognized by many PSU banks. The FM said that no stressed asset MSME will be declared as NPA until March 31, 2020.

Earlier in the day, BSE Bankex index closed 1.69 per cent lower, while NSE PSU Bankex closed 2.25 per cent lower in a weak Mumbai market. BSE Finance index slumped 1.19 per cent.