Continuing efforts to increase credit disbursement, Finance-Minister Nirmala Sitharaman will meet the heads of PSBs on Monday to take stock of recent steps taken by the government, including the first phase of the 'outreach programme' across over 200 districts during the festive-season, a senior government official told Mint. "The progress related to announcements made last month could be discussed," the official cited above added.

The Indian government had no outstanding loans with the central bank under the ways and means advances in the week ended Sept. 6, according to a weekly statistical supplement released by the RBI on Friday. State governments had loans worth 4.21 billion rupees from the RBI in the week ended Sept. 6 compared with 6.06 billion rupees in the previous week, the release showed.

The Reserve Bank of India is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy. The State Bank of India, the largest lender by assets, has cut its benchmark lending rate by 30 bps.