New delhi sources stated that Finance Minister Nirmala Sitharaman, said that there wasn't any liquidity problem in the country even as the government decided to join an outreach by public sector banks ahead of the festive season. She said “I have not heard liquidity as a problem from anybody here today”. She also said that micro-finance units at the meeting have vouched for growth and are extending loans and that there is demand in the country.
Nirmala said “Many of the MFIs and micro-finance units which have come here are in deep country. They said that in those areas there is still demand and they are extending loans. All of them clearly voiced a positive growth which is a good encouraging story”. Furthermore Sitharaman said there was no disagreement at the meeting, which she described as “tonic-like”.
She said “On the whole it was very tonic-like meeting, where I heard a lot of positive things. Not one voice said there was a concern, shortfall of demand. None of them voiced liquidity concerns”. Previously finance secretary rajeev Kumar said that the government would join the banks’ outreach program to promote demand. Kumar said “The festival season is coming. Therefore, we have all decided to join the outreach program and step up their efforts in various districts”.
