• search
For Quick Alerts
For Daily Alerts

We have not exhausted ammunition on rate cuts, policy actions: RBI Governor

Google Oneindia News

New Delhi, Aug 27: The Debt Resolution Framework is expected to give durable relief to borrowers facing COVID-19 related distress, Reserve Bank of India Governor, Shakikanta Das said.

Das was delivering the keynote address at the Unlock BFSI 2.0 event. Post containment of pandemic, careful trajectory needs to be followed for unwinding; financial sector should return to normalcy, he also said. By no sense should it be assumed that RBI will unwind the measures soon, he further added.

Being overly risk averse self defeating for banks: RBI Governor

He also said that overall, the banking sector continues to be sound and stable.

On GST revenue shortfall, Centre gives states two optionsOn GST revenue shortfall, Centre gives states two options

Consolidation of PSBs is a step in the right direction and the size of the banks is essential, but efficiency is more important, he further added.

Das also said being overly risk averse is self defeating for the banks. There is considerable room for improvement in banks to avoid frauds, he also added. To say that banks will face stress is stating the obvious. What is more important is how the banks react and respond to the challenge, the RBI Governor said.

Proactive raising of capital will be crucial to improve the resilience of banks and the financial sector. Once there is clarity on COVID-19 curve and other aspects, the RBI will start giving its estimates on inflation and growth, Das said. We have not exhausted our ammunition, whether on rate cuts or other policy actions, he further added

    BJP tops Facebook political ad spending at Rs 4 crore & more news | Oneindia News

    He also said that the current pandemic related shock is likely to place pressure on the banks' balance sheet. The financial institutions have to walk a tight rope in the post pandemic period. It will be important to see how the banking space reacts to the challenge, he also said.

    The recent capital raising efforts of the leaders and the non-bank finance companies will boost the confidence of not just domestic but foreign investors as well.

    He also lauded the banking sector and said that the banks have maintained operational continuity during these challenging times that had forced half the world to sit at home.

    The banking sector employees have risked their life in an effort to continue operations.

    The role of the Central Bank is to make sure that the financial markets function in an efficient manner. The RBI Governor also said that the Central Bank has various avenues at its disposal and will continue to use them as and when needed.

    For Daily Alerts
    Get Instant News Updates
    Notification Settings X
    Time Settings
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X