With the easing of lockdown restrictions, the Indian economy is showing signs of going back to normalcy, Reserve Bank of India (RBI) Governor Shaktikanta Das said Saturday. Delivering the keynote address at the 7th SBI Banking & Economics Conclave, Das said the central bank was prioritising on both growth and financial stability, and has taken several measures to protect the financial system and support the economy during the current crisis.
“The topmost priority for the RBI is growth; financial stability is equally important,” Das was quoted as saying by news agency PTI. “The RBI has taken several measures to protect our financial system, and support the economy in the current crisis.”
“The Indian economy has started showing signs of going back to normalcy after the easing of restrictions… Building buffers and raising capital is crucial to ensure credit flows and build resilience in the financial system,” he added.
Das’ remark comes days after Prime Minister Narendra Modi said “green shoots” of recovery were visible in the country’s economy, and that India had undertaken “deep structural reforms” and implemented “targeted” relief packages for the country’s poor during the pandemic.
Das Saturday said the pandemic would result in “high NPAs and capital erosion”.
At SBI conclave, interesting Q for RBI Gov Shaktikanta Das: “Will we see more currency notes with your signature?” (i.e., will RBI print more money for meeting Govt’s fiscal deficit?)
“Bigger issue for another discussion another day,” says Das. The issue is alive. @IndianExpress
— P Vaidyanathan Iyer (@iyervaidy) July 11, 2020
He also said the RBI’s police action for medium-term would require careful assessment of how the crisis unfolds.
(With inputs from PTI)
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