Sitharaman to review implementation of resolution framework for COVID-related stress in bank loans on Sept 3

New Delhi [India], Aug 30 (ANI): The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will review the implementation of the resolution framework for COVID-19 related stress in bank loans with the top management of Scheduled Commercial Banks and Non-Banking Financial Companies (NBFCs) on September 3, according to an official statement on Sunday.
According to the Finance Ministry, the review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers and discussing issues that require addressing for smooth and speedy implementation.
"Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will review with the top management of Scheduled Commercial Banks and NBFCs, the implementation of the resolution framework for COVID-19 related stress in bank loans on Thursday, 3rd September 2020," the statement said.
Earlier, Reserve Bank of India (RBI) Governor Shaktikanta Das had said that the resolution framework is expected to give a durable relief to borrowers facing the pandemic-related stress.
Das had said that while green shoots are emerging and businesses are getting back to normalcy, it is hard to measure the impact of COVID-19 on the economy. The RBI has taken various steps like interest rate cuts and a moratorium on debt servicing.
But there has to be a calibrated, cautious exit plan for the long-term, he had said.
The RBI, had earlier, granted a moratorium period to help borrowers in deferring their EMI payment on term loans amid the pandemic and later extended it till August 31. (ANI)