The apex bank, RBI has expressed its optimism about the Indian economy and said that the country is nearing revival from shocks created by lockdown due to Covid-19 pandemic.
The Reserve Bank of India Governor Shaktikanta Das, at the launch of the book ‘Portraits of Power: Half a Century of Being at Ringside’, written by chairman of Finance Commission N K Singh, said that financial entities have adequate capital. “As COVID-19 pandemic set in we had alerted and asked banks and NBFCs to undertake stress tests in the context of coronavirus. I had myself interacted with banks and NBFCs on the need to build up capital buffers proactively and adequately capitalize their financial entities, so that they not only strengthen their inherent resilience to tide over financial stress but also have adequate capital to support growth, to ensure credit flow is maintained,” Das said.
Das stated that the economic future of the country looks bright due to accommodative monetary and fiscal policies being pursued by the central bank and the government
The RBI governor also clearly emphasized on the importance of adequate capital buffer for all financial entities to nurture growth. “We are today at the doorstep of revival process after and due to the effect of the pandemic and it is very important that financial entities have adequate capital and many of them have already raised the capital others, both in private and public sector, will do so in the coming years,” he added.
Das added that both the central government and the Reserve Bank of India are maintaining an accommodative stance, which hints that the government and the apex bank are prepared to provide adequate funds to support growth. RBI governor said that both monetary and fiscal policies are working in tandem despite the government already exceeding its combined deficit target. He urged the central government to spell out a fiscal roadmap for the country’s economy.
(with inputs from Agencies)