”Capitalization of deferred loan payment must be done with due diligence….”

She says ”Great-Lockdown”, Gita Gopinath the present Economic-Counsellor at the International Monetary Federation-(IMF), compares the present C-19 economic choke with the Great Depression, a known financial leech of it’s time.  Global GDP suffers $ 9 trillion loss, but India has lesser dark clouds as it manages to hook-grip it’s GDP at 1.9%, the highest amongst the G-20. The current Indian government has an organized and efficient intellect team chairing the Administrative affairs. Ordinances that float are the strategic compose of scholars, intellects, fiscal spinners & financial regulators, they are, Mrs Nirmala Seetharaman, FM-India, both the Financial Heads of the Public and Private banks including RBI, apex financial governing body. The chemistry between humans and mother earth has its own legacy. Together they have surpassed all high-low eco-bumps and notorious-corona too shall sweep-off. To combat Covid-19 the needs are for maintaining social distancing and formulating sustainable Economic strategies. The Private banks should indulge in mentoring its customers about the concept and usage of E-commerce in banking activities in user-friendly mode which is easily interpreted. There is no fast track strategy to instantaneously revive a draining Economy. Banks now operate remotely and digitally the priority operations. Standard protocol is in play as all the banks have a common enemy, Coronavirus. The World Bank stage-roles as mentor in lockdown strategizing it cripples on three aspects, Prepare, Cope & Recover. All Banking bodies prioritize promoting C-19 hygiene norms and bliss of digitalization, importance of the Arogya Setu application and beneficial alarming features it equips with in alarming corona infected zones.

The core activity of Private Banks now is to cater stand-still transactions on FIFO base, consider periodical assess-reassess of working strategies/ amend, if necessary. Have no expectations for incentives/ surplus/ revenue gain till clear prospects arise. But this doesn’t mean freezing the routine track-check activities of your bank’s financial-metrics and cash-flow. Be very mindful of pros-cons on errors/omissions. Banks should have handy access to customer’s data while working remotely and equip with the quality infrastructure especially, the high-speed net connectivity to avoid communication barriers.

The only essence now is maintaining the digital connect. The utmost critical activity that shall fall immediately after lockdown is the treatment of accumulated deferred payments that has been temporarily postponed. Capitalization of the deferred loan payment must be done with due diligence by every bank. During lockdown, banks must carefully incorporate transactions of Loan Accounts and must maintain it under respective heads, like “MIS-LOAN” & “NON-MIS-LOAN”. Post-lockdown, banks need to produce mis detailing loans disbursed during the lockdown period. Loans exceeding 5 crores & above shall have records in MIS-LOAN REPORT.

The tele-connect services should be in functional mode at branch offices. The ”On-Call” customer service facility must be functional to cater customer’s grievances /tech-support including escalations. The Automated Teller Machines must frequently be checked for cash shortages and sanitizers deployed with usage-demo pics.

Authentic report of daily cash withdrawals and monitoring fund position must be done timely and shared ensuring consensus. Most banks have a good reputation built with sources that infuse finance during cash deficits, known as ”Money at call”. It can be used during critical urgency. Proper accounting of credit collections, credit cycles and the bad debts must be included in the list.

In the COVID-19 epidemic majority experience bitter-swallows in financial matters. Banks are subject to certain limitations and cannot go beyond that. Loan applications undergo stringent procedural norms before it reaches sanction stage and involves considerable time play. Any haste-chase attempt by loan applicants in fund release might not work out at all.

After partial uplift of lockdown, hope re-kindles.

There is no magic wand to revive the sinking economy but dedicated efforts always fruits.

Have open ears to ideas/suggestions. You never know what might workout. On careful analysis through opportunity glass, one can see a thin-line of hope camouflaged in COVID-19 relief kit. In the COVID-19 lock-down, free ration relief kits are provided to the public by GOI.

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