New Delhi:To increase credit disbursement across the country ahead of the festive season, Finance MinisterNirmala Sitharamanhas directed scheduled commercial banks and non-bank financial companies (NBFCs) to reach out to new customers in 400 districts in two tranches from now and 15 October.
Addressing a press conference after meeting theheads of commercial banks,Sitharaman said in the first instance, the program will be run in 200 districts from now and 29 September where banks and NBFCs will be available to disburse credit to retail customers, farmers, Micro, Small & Medium Enterprises (MSMEs). In the next phase, another 200 districts will be targeted between 10 – 15 October.
“Junior finance minister Anurag Thakur will depute ministers or MPs to attend these programs and come back with report on how it went, “she said.
Banks have also been asked to provide information regarding how many customers have sought and availed themselves of one-time settlement of loans from 1 July to 30 September.
Sitharaman said she has also asked banks no stressed asset ofMSMEsshould be declared non-performing asset till 31 March, 2020 invoking the existing guidelines of RBI.
“We have requested at bank level, the bank should sit with stressed MSME and work out a mechanism how best they can come out even if it requires additional infusion of capital,” she adde d.
Banks requested for a special dispensation for farmers and MSMEs from government. Sitharaman said the request will be considered by the finance ministry.
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