The economy of the whole world has been plunging down due to coronavirus. India is also not untouched by this, but the good thing is that economic activities have started in India. But everything goes as before, it will take time. The government and the Reserve Bank of India have taken several measures to bring the economy back on track, made several announcements, which are under implementation.
In the wake of this Pandemic, Governor of Reserve Bank (RBI) Shaktikanta Das said: “The relief of the loan moratorium to people is temporary, which was given in view of the lockdown. A resolution framework is being prepared for those who have been victims of the crisis, which is expected to give them relief for a long time.
Reserve Bank of India (RBI) Governor Shaktikanta Das has once again hinted at a cut in interest rates. He clearly said that the measures taken to save the economy from the COVID-19 pandemic will not be removed soon. The RBI governor said, “Whether rate cuts or other policy steps, the arrows of our quiver are not over yet.”
Shaktikanta Das said that after stopping the pandemic, the economy will have to move with caution to get on the path of growth. Regarding the relief measures announced by the central bank recently, Das said, “By no means we should assume that the RBI will withdraw the measures soon.”
This time there was no cut
In the monetary policy review released on August 6, the RBI did not change the Repo Rate. The central bank has earlier cut the Policy Rate by 1.15 percent in the last two meetings. Currently, the Repo Rate is 4 percent, the reverse repo rate is 3.35 percent.
Governor told when the figures will be released
With this, Shaktikanta Das said that once there is clarity on the outbreak of COVID-19 pandemic and other aspects, RBI will start making its forecasts on inflation and economic growth.
Banks ‘condition better’
RBI Governor said that overall, the banking sector remains steadily strong and stable and the integration of public sector banks is a step in the right direction. To bring the economy back on track, the Reserve Bank has taken many big steps like cutting interest rates and moratorium. The RBI has announced a 6-month Moratorium which ends on 31 August. On the Moratorium, the RBI Governor said that ‘this was a step in the right direction’. The RBI governor has also given advice on the functioning of public sector banks, he said that capacity of bank matters more than its size. However, the banking sector is stable and in good condition.