Finance Ministry, RBI to discuss NPA issue on June 6

The Central government is planning to hold a joint meeting with the Reserve Bank of India (RBI) ahead of its policy review on June 6, to discuss the non-performing assets issue.

NEW DELHI:The Central government is planning to hold a joint meeting with the Reserve Bank of India (RBI) ahead of its policy review on June 6, to discuss the non-performing assets issue.

According to sources in Finance Ministry, the meeting will discuss the “prescriptive roadmap” to cure the bad-loan troubles of Public Sector Banks.

“There will be meeting between the Finance Ministry official and the RBI. The main agenda will be deciding prescriptive roadmap for the banking sector. The meeting will be likely before the next policy review by RBI,” the source said.

The meeting is likely to be attended by Finance Ministry, RBI, bank officials and officials from NITI Aayog.

The government may also discuss if there is any more capital infusion is required, the official said.

Last week, the RBI ordered the Dena Bank Ltd to not to issue any fresh loans and hire any new personnel. At present, out of 21 state-owned banks, there are 11 banks under the Prompt Corrective Action of the RBI framework because of their weak financials. According to sources, the list may get longer.

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