Reserve Bank Governor Shaktikanta Das Monday said the central bank will take steps if there is a liquidity shortage in the economy, though currently liquidity needs are largely met.
Reserve Bank Governor Shaktikanta Das Monday said the central bank will take steps if there is a liquidity shortage in the economy, though currently liquidity needs are largely met.
Das, who met associations of small and medium enterprises in the national capital, will meet non-banking financial companies (NBFCs) on Tuesday to get a perspective on liquidity needs, he told reporters here.
Banks, he said, have been asked to look at the viability of individual proposals for loan restructuring of Micro, Small and Medium Enterprises (MSMEs).
"We are constantly monitoring it," he said on the liquidity issue. "We believe liquidity needs are largely met." RBI, he said, will take steps if there is a liquidity shortage.
Infusion of liquidity in the market will be need-based, he said adding RBI will maintain adequate liquidity.
On the meeting with MSMEs, he said banks have been asked to look at the viability of MSMEs before loan restructuring.
On issue of NPAs he said, "No target of NPAs has been given to us. There are many issues on which the government and the RBI hold discussions, but the final decision is of the RBI, on matters that are under its domain."
"We also have constituted a committee to look into the issues related to the Micro, Small and Medium Enterprises (MSMEs). We are looking at what kind of governance reforms can be brought about in the functioning of the banks, " Shaktikanta Das further added.
"I will meet non-banking financial company (NBFC) representatives in Mumbai tomorrow, we will discuss the liquidity issue of NBFCs. Liquidity conditions are being monitored constantly", Das said.
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 "Will take steps if there is liquidity shortage: RBI Governor")
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