Tuesday, February 25, 2020
Reserve Bank of India (RBI) Governor Shaktikanta Das on 24th Feb said that slowing credit offtake was one of the challenges facing Indian banks and credit flow to the real estate sector needed to improve. He said, "RBI proposes to take tematic studies across financial institutions, and top 50 Non-Banking Financial Companies (NBFCs) are also being monitored very closely.
Amid a liquidity crunch following the crisis in IL&FS in 2018, it has become difficult for developers to real estate sectorraise construction finance, once considered the safest form of lending by banks and NBFCs.
Reserve Bank Governor also asked banks to be prudent in lending and highlighted that the quality of appraisal is very important.
He mentioned that the issue of governance in public and private sector banks is of utmost importance and the management of banks have a critical role to play in improving the governance.
