Finance Ministry to hold review meeting with public sector banks today to discuss various issues

New Delhi: Finance Minister Nirmala Sitharaman will hold a review meeting with public sector banks (PSBs) on Thursday to discuss various issues, including follow up on transmission of monetary policy rates.

The government is set to ask PSBs to expeditiously introduce repo-rate linked products "to step up affordable credit", according to an agenda item of the meeting.

The Reserve Bank of India (RBI) had earlier this month made it mandatory for banks to link all their fresh retail loans to an external benchmark - effective 1 October - and the central bank's repo rate being one such benchmark. Following the move, banks such as Punjab National Bank and Allahabad Bank announced linking their retail loans with the RBI's repo rate.