New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Thursday held a review meeting with the top management of Scheduled Commercial Banks and NBFCs, on the implementation of the resolution framework for COVID-19 related stress in bank loans.
The Finance Minister 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.
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.
The FM focused on two points that lenders immediately put in place Board-approved policy for resolution, identifying eligible borrowers and reaching out to them and the other was about quick implementation of a sustained resolution plan by lenders for revival of every viable business.
Meanwhile, the lenders have 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).
The Ministry of Finance has also been engaging with RBI to ensure that the lenders are assisted by RBI in the resolution process, an official release said.