Reserve Bank of India (RBI) Governor Shaktikanta Das has advised banks to ensure continuity in provision of various financial services including credit facilities to individuals and businesses in the face of challenges brought on by the pandemic.

The RBI Governor advised banks during a meeting with the MD & CEOs of select Private Sector Banks on May 25, 2021 through video conference. The meeting was attended by Deputy Governors M K  Jain, Dr. Michael D. Patra, M Rajeshwar Rao and T Rabi Sankar.

"In his opening remarks, the governor recognised the crucial role played by the private sector banks as important stakeholders in the Indian banking sector. He impressed upon the banks to quickly and swiftly implement the measures announced by RBI on May 5, 2021, in right earnest,” the RBI said in a statement on Tuesday.

On May 5, the RBI governor had announced a slew of measures to counter the impact of the second wave of the COVID-19 pandemic on banks and financial institutions as well as their borrowers. These included a term liquidity facility of Rs 50,000 crore for ramping up emergency health services, a fresh resolution framework for COVID-related stressed assets, and a relaxation in the overdraft facility for state governments.

Das also urged banks to continue focusing on efforts to further strengthen their balance sheets proactively.

He discussed the current economic situation and the state of the banking sector in Tuesday’s meeting. Credit flows to small borrowers and micro, small and medium enterprises (MSMEs) and progress in the implementation of COVID Resolution Framework 1.0, announced in August 2020, were also discussed.