Reserve Bank of India Governor Shaktikanta Das and top officials of small finance banks on Friday discussed, among other things, the outlook on potential stress on balance sheets and liquidity scenario in the backdrop of rising Covid-19 infections and consequent localised lockdowns.

The current economic situation and credit flows to different segments of borrowers were also discussed through video conference. Besides Das and the heads of small finance banks, the meeting was also attended by deputy governors MK Jain, M D Patra, M Rajeswar Rao and a few other senior officials of the RBI.

In his opening remarks, Das recognised the important role of small finance banks in delivering credit and other financial services to individuals and small businesses. He also emphasised the supervisory expectations in terms of maintaining their business resilience and managing risks prudently.

The RBI governor advised the banks to pay focused attention on improving the customer grievance redress process while also strengthening the IT systems in the interest of banks and their customers.