File photo RBI Governor Shaktikanta Das. (Source: PTI)

RBI Governor To Meet Private Sector Lenders Next Week

Reserve Bank of India Governor Shaktikanta Das on Thursday said he will meet representatives of private-sector banks and cooperative banks next week to discuss their concerns.

He tweeted his decision to meet the representatives.

As part of the consultative process, Das finished meeting with public-sector lenders on Wednesday. It is believed that heads of state-run bankers discussed issues related to relaxing the prompt corrective action framework, liquidity and credit flows to MSMEs.

Das took over as 25th Governor of RBI last week following the abrupt exit of Urjit Patel ahead of schedule due to differences with the government.

Also read: Patel's Resignation Adds to Clouds Surrounding India Bank Stocks

Of the 21 state-owned banks, as many as 11 are under the Prompt Corrective Action framework, which imposes lending and other restrictions on weak lenders. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank Ltd., UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

In the first meeting last Wednesday, the bankers had sought some easing in the one-day default norms announced by the RBI through the Feb. 12 circular, which nullified all other debt resolution mechanisms.