The secretary was addressing the media after the finance minister Nirmala Sitharaman met the heads of state-run banks for measures to boost the economy.
He said that an amount of Rs 34,342 crores was disbursed to new entrepreneurs while noting that the banks followed prudential norms while disbursing the loans.
Finance Minister Nirmala Sitharaman said the banks have sufficient liquidity, and efforts are being made to ensure that due payments are released to the micro, small and medium enterprises (MSME) sector by large corporates.
In order to ensure liquidity for small businesses, Sitharaman said that banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates.
The 'loan mela' was one of the ways in which the government wanted to boost demand in the economy which has been facing slowdown.
Another 'loan mela' will be held before Diwali from Oct 21-25.
The demand in the camps was robust and the secretary said that all the PSBs are maintaining their regulatory capital levels.
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36 Comments on this Story
Swadesh Agarwal407 days ago
Banks playing at the cost of depositors'' money. Depositors are crying and dying and are losing the trust in banks but the government is pressurising banks to organize loan melas and throw the depositor''s hard earned money into drain. most of the co-operative banks have earned a bad name as the recovery of loans given by them is very low but corruption is very high. Every politician is promising loan waiver, where does the money come from? It is the public money and not the politicians'' personal assets. Should we stop depositing money in Banks and go back to medieval age sahukars who at least had some moral and could be pressurised.
Rohan 407 days ago
Just like "Loan in 59 minuets" scam ?
Rohan 407 days ago
Disbursed on papers to the unwilling borrower. Those who avail it, will not repay.