FICCI welcomes measures to tighten banks' regulatory and supervisory framework But urges government and RBI to ensure that genuine businesses are not deprived of the credit support

Mar 15, 2018

 

NEW DELHI, 15 March 2018: Commenting on the directive given by the RBI to banks to stop issuance of LOUs, Mr. Rashesh Shah, President, FICCI said "Following the recent turn of events in Punjab National Bank, both the government and the central bank have taken a series of measures to tighten the regulatory and supervisory framework with regard to the banks. Banks have also been directed to identify and deal firmly with wilful defaulters. FICCI welcomes and supports these measures".

 

"However, at the same time, we are also seeing expression of concern from sections of industry, particularly MSMEs, about limiting of credit facilities that could affect their business performance and increase costs. FICCI would urge the government and the RBI that at the current stage of economic cycle, when we are on a recovery mode, we should ensure that genuine businesses and entrepreneurs are not deprived of the needed liquidity and credit support," added Mr. Shah