BackArun Jaitley urges banks to step up credit disbursal
In a pre-budget meeting, Jaitley points out that there is an immediate need to give impetus to credit growth
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New Delhi: With the Reserve Bank of India (RBI) cutting its policy rate on Thursday, finance minister Arun Jaitley urged banks to step up credit disbursal as the government looks to revive economic growth.
In a pre-budget meeting with representatives of banks and financial institutions, Jaitley pointed out that there is an immediate need to give impetus to credit growth.
Most banks are likely to reduce their base rates in the coming days which could help in lower cost of capital across sectors after RBI reduced the repo rate by 25 basis points.
In the meeting, banks made various suggestions for pick up in credit growth, measures for early settlement of disputes through debt recovery tribunals and incentivizing plastic and online payments by giving 1% cash credit incentive and exemption from service tax.
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