New Delhi: Finance Minister Nirmala Sitharaman will on Thursday chair a meeting of the RBI’s Financial Stability Development Council meeting to discuss mainly the credit offtake in the retail and corporate sector as well as the liquidity situations with regard to the NBFCs with the financial regulators.
She will take stock of the impact of the steps taken by the Government so far on the state of the economy and where policy interventions are needed. The meeting is to be attended by sectoral regulators, including RBI Governor Shaktikanta Das, SEBI chairman Ajay Tyagi, Irdai chairman Subhash Khuntia, Insolvency regulator M.S. Sahoo.
Sources said Sitharaman will seek input from the regulators on reviving demand and consumption to boost growth. The meeting will also discuss the sectoral policy intervention needed by any sector.
The Q2 GDP growth is expected on November end and it will be the decider to see what further directions and policy measures are needed.
The government has announced several short and long-term measures to boost the economy in three phases between August 23 and September 14.
Sources said the issue of PMC Bank is also likely to come up where RBI has recently enhanced withdrawal limit to Rs 50,000.
The Finance Minister may be keen on knowing what can be done to reduce the stress of depositors from RBI Governor and what kind of insurance security these depositors have where their money is safe under such external circumstances where they are not at fault from the Irdai chairman.
The government on Wednesday approved a plan to set up a Rs 25,000 crore alternative investment fund (AIF) to revive stalled housing projects whose net worth is positive as it seeks to provide relief to distressed homebuyers and more importantly this would also cover the NPA projects or the projects which are at NCLT but not heading towards liquidation.
Earlier the government had given corporate tax reductions to companies to 22.5 per cent bearing an outgo of Rs 1.45 lakh crore.
The FSDC meeting will also be attended by Minister of State for Finance Anurag Singh Thakur, Finance Secretary Rajiv Kumar, Economic Affairs Secretary Atanu Chakraborty, Revenue Secretary Ajay Bhushan Pandey and other top officials of the finance ministry.
