PM Narendra Modi asks banks, NBFCs to fund bankable proposals; assures support

New Delhi: Prime Minister Narendra Modi on Wednesday (July 29, 2020) joined a meeting with heads of banks and NBFCs, urging the banks to introspect to ensure “bankable proposals” do not suffer from lack of credit.

The primary purpose of the meeting was to discuss and deliberate a roadmap and vision for the future.

“Each bank needs to introspect and take a relook at its practices to ensure stable credit growth. Banks should not treat all proposals with the same yardstick and need to distinguish and identify bankable proposals and to ensure that they get access to funding on their merit and don’t suffer in the name of past NPAs,” the Prime Minister’s Office (PMO) said in a statement after Wednesday’s meeting.

The meeting comes in the wake of banks and non-banking financial companies (NBFCs) seeking additional liquidity for lower rated companies.

“It was emphasised that the government is firmly behind the banking system. The government is ready to take any steps necessary to support it and promote its growth,” the statement said.

“Banks should adopt fintech like centralised data platforms, digital documentation and collaborative use of information to move towards digital acquisition of customers. This will help increase credit penetration, increase ease for customers, lower costs for banks and also reduce frauds,” the PMO statement said.