Shaktikant Das, the Governor of Reserve Bank of India, on Saturday said that the steps taken by RBI to save the nation from financial crisis created by COVID-19 are getting results. The economy is being helped to recover. Speaking on the virtual conclave ‘Covid-19 Impact on Business and Economy’ organized by State Bank of India (SBI), Das said growth was the RBI’s top priority. Financial stability is just as important.
The RBI governor said the offsite surveillance mechanism is being strengthened to identify the risks posed by the epidemic. The Covid pandemic has increased the non-performing assets (NPAs) and decreased the capital. He added that the RBI is engaged in discussion with all stakeholders to resolve the issue of Punjab and Maharashtra Co-operative (PMC) Bank.
The RBI governor also highlighted these four points :
1)Capital is being raised to bring relief to the financial system and ensure credit flow.
2)There are signs that the Indian economy is returning to normal due to the easing of sanctions.
3)Structured mechanisms are needed to address the problem of stressful assets. Legal support is a must for this to happen.
4)Indian companies and industries are responding better to this crisis.