RBI has not exhausted its ammunition in COVID-19 fight: Shaktikanta Das
Speaking at the ‘Unlock BFSI 2.0’ event, RBI Governor Shaktikanta Das stressed that the central bank has not exhausted its ammunition, whether on rate cuts or other policy actions.
RBI Governor Shaktikanta Das on Thursday stressed that post containment of coronavirus (COVID-19) pandemic, a careful trajectory needs to be followed for unwinding and added that the financial sector should return to normalcy.
Speaking at ‘Unlock BFSI 2.0‘ event by Business Standard, the central bank governor said that the debt resolution framework is expected to give durable relief to the borrowers who are facing COVID-related distress.
He stressed that the RBI has not exhausted its ammunition, whether on rate cuts or other policy actions.
He said that the banking sector in India continues to be sound and stable and clarified that it should not be assumed that RBI will unwind the measures soon.
During his address, the RBI governor said that the consolidation of public sector banks is a step in right direction and added that the size of banks is essential, but efficiency is even more important.
Being overly risk-averse is self-defeating for banks, RBI boss said.
Speaking on the rising number of banking frauds, Das said that there was considerable room for improvement in banks to avoid them.
On the financial stress being faced by banks, the central bank head said how banks react and respond to the challenge is important. He added that a proactive raising of capital will be crucial to improve the resilience of banks and the financial sector.
Shaktikanta Das said that once there is clarity on the COVID-19 curve and other aspects, the RBI will start giving its estimates on the country’s inflation and economic growth.
Speaking on the government’s response, the RBI chief said that the government’s response has been fiscally very responsible, prudent and very calibrated.