By P. Sarojini’
Mumbai (CWBN)_ Mr. Shaktikanta Das, Governor of Reserve Bank of India, said thatIndia is now at the doorstep of the revival process from the corona virus. He stated that financial measures taken by the government during the pandemic situations have so far been effective and well calibrated and prudent and that both financial and monetary policy were counter-cyclical and accommodative and were working in close symmetry. He said “The central government has provided prudent measures to provide financial support to weaker sections and small business”.
He said that many of the entities have already raised capital and others are planning to and in the coming months they would certainly do so. He said “It’s very important that the financial entities have adequate capital (to support growth).”
The RBI Chief said that once after the covid 19 pandemic, the government will have to spell out a fiscal roadmap for the country. He said “I think post COVID, once there is containment of pandemic, the government will certainly have to spell out a fiscal roadmap that India should adopt.”
On stress in the banking and NBFC sector, Mr. Das said to deal with the stress caused by covid 19, capital buffers are needed for banking and non-banking finance companies. He said “We need to build capital buffer for banks, NBFCs to deal with stress caused by COVID-19”.
The nation-wide lockdowns in March had pushed the economy to contract by a record 23.9% during April-June. According to the International Monetary Fund (IMF) forecast, Indian economy is projected to contract by a massive 10.3% this year. The Reserve Bank of India expects the economy to shrink by 9.5% in the current financial year.
