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Mumbai: FM Nirmala Sitiharaman and heads of state-run banks are set to work out ways to remove the irritants that are holding back delivery of credit to industries despite various measures from the government and the banking regulator, and review the progress of various schemes and tweak them if needed, said people familiar with the matter.
Bankers are likely to present to the minister that there is a need to extend the payment moratorium since businesses are still limping with a majority of them yet to begin operations and that norms to recognize a defaulter as bad loans need a review, said those people who did not want to be identified.
“A host of issues are on the agenda including the working capital products launched by banks and the scheme provided by the RBI, but most importantly we will take up the need for extension of moratorium with the minister,” said a banker who did not want to be identified.
Ever since the government locked down the economy in March to prevent the spread of Covid-19 virus, the central government and the Reserve Bank of India have come up with various schemes, including payment moratorium and liquidity measures to help …
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