RBI directs banks to give loans to needy units

by RAMNATH PAI RAIKAR
Posted on 2009-01-07
PANAJI- A high level meeting convened by the Reserve Bank of India for re-phasing/ restructuring of the Goan industrial units affected by the global meltdown, especially small and micro industrial units, which was held in the city on Tuesday directed the banks to extend beneficial loans to such needy units.
The meeting was attended by the Secretary for Industries, Mr V K Jha, the director for Industries, Mr Sanjeet Rodrigues, the chief general manager of the RBI, Dr Sahoo and the vice president of the Goa Chamber of Commerce and Industry, Mr Manguirish Pai Raikar, among others. The heads of around 22 banks – nationalised as well as private sector – also attended the meeting.
The meeting further decided to appeal to the Goan industrial units to avail the facilities as per the circular of the RBI on ‘Prudential guidelines on restructuring of advances by banks’, which is a comprehensive set of guidelines rationalising and putting together the existing guidelines. These benefits would be available for a limited period of time with the deadline closing on January 31, 2009.
Furthermore, it was decided to carry out a survey at the government level as regards the industrial units in the state hit by the ongoing recession. The ‘Prudential guidelines on restructuring of advances by banks’ also maintains, “Special regulatory treatment was extended to commercial real estate exposures restructured for the first time as well as to exposures (other than commercial real estate, capital markets and personal/ consumer loans) which were viable but were facing temporary cash flow problems and needed a second restructuring.”
The Goa Chamber of Commerce and Industry which played an important role in the RBI decision, in association with the ICICI Bank will hold programmes for making the industrial units aware about the norms, rules and regulations which are released by the RBI from time to time, for improvement of financial conditions of the industrial units.