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10 Apr 2021
Centre may redraw bank recapitalisation plan in wake of new challenges
The Budget allocated Rs 20,000 crore towards recapitalisation of PSBs to help them consolidate their financial capacity. Moreover, PSBs have proactively built buffers during the financial year 2020-21 (FY21) to improve their resilience in the face of the shock from the pandemic. The problem has been accentuated with the Reserve Bank of India now writing to the bank to meet their obligation towards interest on interest for all borrowers where exposure is over Rs 2 crore as well.
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