Prime Minister Narendra Modi today interacted with the representatives of banks and NBFCs, where he asked the banks to not treat all credit proposals with the identical yardstick and make sure that the borrowers get access to funding on their merit and don’t suffer within the name of past NPAs. Narendra Modi also urged banks to motivate small entrepreneurs, self-help groups, and farmers to use institutional credit to fulfill their credit needs and grow, per the Prime Minister’s Office. within the discussion held today evening, the Prime Minister highlighted the crucial role of the financial and banking industry in fostering growth.
Further within the discussion, PM Modi said that every bank must introspect and relook at its practices to make sure stable credit growth. Reassuring the government’s support, he added that the govt. is firmly behind the banking industry. the govt also encouraged banks to adopt financial technology like centralised data platforms, digital documentation, and collaborative use of datato maneuver towards digital acquisition of consumers. The centre said that the move will help increase credit penetration, increase ease for patrons, lower costs for banks, and also reduce frauds.
While the Indian banking sector is undergoing financial stress, it also carries baton to induce liquidity into the companies. However, the woes of India’s commercial banks don’t seem to change state anytime soon as NPAs are showing the rising trend. The banking company of India has projected that NPAs may increasewithin the coming months.