KL NEWS NETWORK
SRINAGAR
Governor, Reserve Bank of India, Raghuram Rajan Thursday afternoon interacted with the representatives of Trade and Industry Bodies and Travel and Tour operators of the valley.
“The representatives urged the RBI Governor to ensure that the guidelines for the relief measures by banks in the areas affected by natural calamities are adhered to by all the nationalized banks operating in the State,” an official statement said.
“Our housing and business sectors suffered massive damage in one of the worst ever urban flooding and we had high hopes from banking institutions that they will come forward to help us build our homes and support us in reviving our business, but unfortunately most of the banking institutions have shown reluctance and shunned their responsibilities in this regard,” they said and asked the RBI Governor to use his good office and intervene in the matter.
The representatives demanded interest waiver, restructuring of existing loans, sanctioning of fresh loans for resumption of normal business, keeping in view the total liability of the borrower arising out of the old loan where the assets financed have been damaged or lost on account of floods as well as the new loan for repair of such assets, the statement said. “They said that the repaying capacity of business community has been severally impaired due to the flood damage as such relief in repayment of loans has become necessary.”
Ranjan said that he would “like to understand” as to “how we can make the flow of credit” easier to the business community and from the bank perspective how we can enhance their confidence and minimize their concerns regarding repayment. The RBI Governor said that his organization has no problem in supporting interest free financing, the statement added.
“The RBI Governor said that he has noted the concerns and suggestions put forth by the representatives of Trade and Industry Bodies and Travel and Tour operators and would communicate these to the Union Government.”
Earlier in the day, Rajan interacted with the students from various Departments of Kashmir University. “They asked questions pertaining to various issues of Finance & Economy and Rajan explained them about the working of the RBI.”
