Govt Closely Monitoring Rate Cut by Banks:Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that the government is closely monitoring the transmission of the repo rate cuts by the banks to the consumers.

During a video conference with the Managing Committee Members of PHD Chamber of Commerce and Industry, the minister said that the Centre is also monitoring the ground level implementation of the recent relief measures announced under the 'Aatma Nirbhar Bharat' package.

"We are closely monitoring the situation in consultation with banks so that relief measures announced by the government are effectively percolated at ground levels, especially the transmission of repo rate cuts to consumers in terms of reduced interest rates," said Sitharaman.

The disbursement of loans under the provision of Rs 3 lakh crore collateral free automatic loans for businesses to mitigate the daunting impact of pandemic is also being monitored, she said.

D.K. Aggarwal, President, PHD Chamber of Commerce and Industry said the economic package is not only the monetary and financial stimulus, but also contains game changing reforms.

He suggested that one-time restructuring of the loans without affecting the classification for the severely impacted sectors such as tourism, aviation, entertainment, real estate, automobile, among others is the need of the hour.

Aggarwal also said that there may be a formal communication from the government to the banking sector to remove the fears from the minds of bankers so that the bank officials are able to sanction and disburse loans to the trade and industry without any fear.