IBA holds meeting with large banks, discusses on possible credit lines, special benefits to give various sectors

In order to figure out ways to address the business hit by coronavirus outbreak, large banks had an emergency meeting. 20 senior bankers attended the video conference and discussed discussed on possible credit lines and special benefits that could be given to transportation, travel and tourism, exports and MSMEs.

Indian Banks’ Association called the meeting where, IBA chief executive Sunil Mehta said, “Banks are collating information, and IBA will then forward the recommendations to RBI.”

He added, “IBA and member banks are planning to come out with advisories to create customer awareness and promote contact-less banking. IBA will also assure clients that institutions are putting in place business continuity plans, and encourage banks to have flexible working hours.”

“Several businesses are stuck… there are so many cases where letters of credit have been opened, payments made, but shipments have not arrived. Some of the banks felt that the present circumstances may call for regulatory forbearance as many borrowers could find it difficult to service loans in time,” said another banker.