FM to meet top management of Scheduled Commercial Banks and NBFCs  |  Photo Credit: PTI
New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman will meet with the top management of Scheduled Commercial Banks and NBFCs on Thursday, 3rd September 2020. In the meeting, FM will review the implementation of the resolution framework for COVID-19 related stress in bank loans.
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.
Note that a meeting of State Finance Secretaries with the Union Finance Secretary and Secretary (Expenditure) is scheduled to be held on 1st September 2020 for clarifying issues, if any. Ministry of Finance tweeted, “States have to communicate their preference within seven working days.”
It is worth mentioning that the central government on Saturday (August 29) said that it would be considering two options to make up for the Goods and Services Tax (GST) shortfall. “The prevailing economic situation is such that central revenues are under greater strain than GST revenue,” the government said, adding that there is a very large borrowing requirement that they face this year.
The government also gave an assurance that senior officials were ready to clarify their doubts. ET Now learnt that the Centre while giving out the details, has assured the states that Finance Secretary Ajay Bhushan Pandey and Expenditure Secretary TV Somanathan will be clarifying all the doubts with the states on September 1st.
The Central government assured states that it stood by the commitment of supplementing the compensation fund as decided in the previous meetings of the GST Council. However, it said borrowing by states was the most feasible option as the Central government faced a very large borrowing requirement this year.