Union Finance Nirmala Sitharaman on Thursday asked banks and NBFCs to “support” borrowers and that COVID-19 related distress must not impact the lenders’ assessment of their creditworthiness.

Sitharaman said this in a review meeting with banks and NBFCs over video conferencing.

She said that banks and NBFCs must immediately have a board-approved policy for resolution, identify eligible borrowers and roll-out the resolution schemes by September 15.

Among other things, Sitharaman told the lenders to have a media campaign to create awareness about the resolution schemes. Also, lenders should ensure that regularly updated FAQs on the resolution framework are uploaded on their websites in Hindi, English and regional languages, and also circulated to their offices and branches, she said.

Sitharaman also reviewed the progress made by various lenders under ECLGS, PCGS 2.0 and sub-ordinate debt schemes announced as part of the ‘Aatmnirbhar Bharat Abhiyaan’, and advised lenders to try and extend the maximum possible relief to borrowers before the festive season.

An amount of Rs 1.58 lakh crore has been sanctioned as on August 31 under ECLGS, out of which more than Rs 1.11 lakh crore has been disbursed. Under PCGS 2.0, bonds/commercial papers of Rs 25,000 crore have been approved for purchase by PSU banks so far. Of this around Rs 13,000 crore amounting to more than 53 percent of the portfolio pertains to bonds and CPs rated below AA-.

First Published:Sept 3, 2020 8:20 PM IST