FM Asks Banks To Expeditiously Implement Budget Announcements, Including New Credit Assessment Model For MSMEs

New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired a meeting on Monday to review the performance of Public Sector Banks (PSBs) on their financial parameters, deposit mobilisation, digital payments and cyber security framework, in addition to access to credit under financial inclusion and other emerging issues related to PSBs.

Sitharaman asked the banks to expeditiously implement the recent Budget announcements, including, a new credit assessment model for MSMEs based on digital footprints and cash-flows. Banks were also instructed by the Union Finance Minister to focus on further increasing credit flow to eligible beneficiaries under various Union Government initiatives like PM Surya Ghar Muft Bijli Yojana and PM Vishwakarma Yojana.

The Union Finance Minister further advised the banks to ensure compliance with the Reserve Bank of India’s guidelines on the handover of security documents after closure of the loans and directed that there should not be any delay in handing over the documents to the customer.

The meeting was also attended by Dr. Vivek Joshi, Secretary; Shri M. Nagaraju, Secretary-Designate, Department of Financial Services; Heads of Public Sector Banks (PSBs) besides senior officials of Department of Financial Services (DFS).