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Conveyed our concerns about cryptocurrencies to Govt: RBI Governor Das at Express-FT series

In at a series of detates organised by The Indian Express and the Financial Times, RBI Governor Shaktikanta Das said that the government will have to decide on how to deal with the cryptocurrency platforms.

By: Express Web Desk | New Delhi |
Updated: September 9, 2021 7:24:40 pm
RBI Governor Shaktikanta Das (Express Photo by Prashant Nadkar/File)

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that the central bank has conveyed its “serious and major concerns” about cryptocurrencies to the government and added that he was seeking more credible answers on their contribution to the economy.

Speaking at the third of a series of online, agenda-setting debates organised by The Indian Express and the Financial Times, Das said that the government will have to decide on how to deal with the cryptocurrency platforms.

“We have conveyed our serious and major concerns about cryptocurrencies from the point of view of financial stability, the government will take a decision… I think we need more credible answers as to whether going forward with the whole private cryptocurrencies, what contribution will it bring to Indian economy,” Das said in a conversation with P Vaidyanathan Iyer, Executive Editor (National Affairs), The Indian Express, and Amy Kazmin, South Asia Bureau Chief, Financial Times.

This isn’t the first time Das has raised concerns on cryptocurrency. Earlier this year, the RBI had flagged major concerns to the government and it is still under examination.

“I do not think there is difference of opinion between the RBI and government on cryptocurrencies,” he had said in March.

Additionally, the RBI governor also said that the central bank is quite optimistic about its 9.5 per cent GDP growth estimate for the financial year 2021-22 (FY22) at present.

Das said that the second wave impact of Covid-19 has waned by August and the economic growth will be better from the second quarter onwards on a sequential basis.

Speaking on the level of inflation in the economy, Das said that the central bank has decided to emphasis more on the growth owing to the ongoing pandemic and operate within the 2-6 per cent inflation range.

“We don’t anticipate a scenario of high inflation getting generalised, high asset prices not feeding price rise,” he said.

He said that the RBI will seek to gradually move towards achieving the 4 per cent inflation target over a period of time and added that the possibility of a sustained increase in inflation is unlikely.

Speaking on the stance of the RBI, he said that a call on continuing with the accommodative stance or not will be taken by the monetary policy committee (MPC) and added that the central bank does not see high inflation getting generalised.

This apart, speaking about the markets, Das said that the easy liquidity conditions across the global markets are among the reasons which have lead to a rise in domestic equity markets.

On the bank NPAs, he said that the gross NPA ratio stood at 7.5 per cent as of the end of the June quarter, and the same is “manageable” as of now and added that the lenders also have adequate capital buffers.

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