Banking News

Finance minister Nirmala Sitharaman likely to meet PSU bank chiefs this week


New Delhi: Finance minister Nirmala Sitharaman is expected to meet chief executives of state-run banks later this week. Sitharaman will take stock of the performance of banks on the government’s flagship schemes and other issues, including the recovery of bad loans.

Last week, after a review meeting with heads of PSBs on resolution of accounts under the Insolvency and Bankruptcy Code (IBC), the finance ministry said in a statement that it has been decided that managing directors of banks will monitor all the cases very closely, particularly the top 20 accounts, at their level.

“It was suggested by banks that the record of default provided by the National E-Governance Services Ltd (NeSL) should be sufficient ground for ascertaining the existence of a default, which will help in expeditious admission of insolvency applications,” the ministry said in its statement, adding that the meeting was also attended by ministry of corporate affairs secretary Manoj Govil and Insolvency and Bankruptcy Board of India chairman Ravi Mittal.

Financial services secretary Vivek Joshi had then indicated that the finance minister is expected to soon hold a review of National Asset Reconstruction Ltd (NARCL).

In July, the government had reviewed the progress under various social security (Jan Suraksha) schemes including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana (PMMY) and Stand Up India. PSBs were asked to achieve the targets allocated to them under the various schemes for financial inclusion for the current financial year at the earliest.

Banks were further told to prepare a roadmap to cover the unbanked adults and launch credit outreach campaigns in credit-deficient districts.


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