Economy showing signs of getting back to normalcy: RBI Guv


Mumbai, Jul 11 (IANS): India's economy is showing signs of getting back to normalcy, Reserve Bank of India Governor Shaktikanta Das said on Saturday.

In a keynote address at the 7th SBI Banking and Economics Conclave, Das noted that medium term outlook still remains uncertain.

"Despite the substantial impact of pandemic in our daily lives, the financial system of the country, including all the payment systems and financial markets, are functioning without any hindrance," he said.

"The Indian economy has started showing signs of getting back to nor malcy in response to the staggered easing of restrictions. It is, however, still uncertain when supply chains will be restored fully; how long will it t ake for demand conditions to normalise; and what kind of durable effects the pandemic will leave behind on our potential growth."

He elaborated that a multi-pronged approach adopted by the Reserve Bank has provided a cushion from the immediate impact of the pandemic on banks, however, the medium-term outlook is uncertain and depends on the Covid-19 curve.

"Policy action for the medium-term would require a careful assessment of how the crisis unfolds. Building buffers and raising capital will be crucial not only to ensure credit flow but also to build resilience in the financial system."

According to Das, the Reserve Bank has asked financial institutions to carry out a Covid stress test to see weaknesses in their balance sheet.

"We have recently advised all banks, non-deposit taking NBFCs and all deposit-taking NBFCs to assess the impact of Covid-19 on their balance sheet, asset quality, liquidity, profitability and capital adequacy for the financial year 2020-21.

"Based on the outcome of such stress testing, banks and non-banking financial companies have been advised to work out possible mitigating measures, including capital planning, capital raising, and contingency liquidity planning, among others. The idea is to ensure continued credit supply to different sectors of the economy and maintain financial stability," Das said.

In addition, he said that post containment of Covid-19, "a very careful trajectory has to be followed in orderly unwinding of counter-cyclical regulatory measures and the financial sector should return to normal function ing without relying on the regulatory relaxations as the new norm".

"The Reserve Bank is making continuous assessment of the changing trajectory of financial stability risks and upgrading its own supervisory framework to ensure that financial stability is preserved," he said.

"Banks and financial intermediaries have to be ever vigilant and sub stantially upgrade their capabilities with respect to governance, assurance functions and risk culture."

  

Comment on this article

  • Johnny, Mangalore

    Sun, Jul 12 2020

    Like everyone else, he too might have noticed the "green shoots "............. .......

    DisAgree Agree Reply Report Abuse

  • Dinesh, Dubai

    Sat, Jul 11 2020

    Stop fooling.......Enough is enough
    You are the Historic GUV of RBI

    DisAgree [1] Agree [6] Reply Report Abuse

  • Charles D'Mello, Pangala

    Sat, Jul 11 2020

    Joke of the year....!!!!????

    DisAgree Agree [11] Reply Report Abuse

  • Alan, Mangalore/U.S.A

    Sat, Jul 11 2020

    unbelievable , only a clown who knows he can fool people will make such a ludicrous statement. Humbug

    DisAgree Agree [7] Reply Report Abuse

  • Gilbert MENDONCA, Udupi/Kuwait

    Sat, Jul 11 2020

    Governor is referring to old History!!! Crores of People of the country are jobless, Industries are closed down, hotel, travel and tourism closed down and millions of people are living in hunger and malnutrition but Economy showing signs of back to normalcy!!!???? How Mr. Governor!!! India doesn't have only ANDH BAKTHS but genuine knowledge of economy living in this country too...

    DisAgree [1] Agree [19] Reply Report Abuse

  • SJM, Mangalore

    Sat, Jul 11 2020

    By increasing Fuel Prices ?

    DisAgree [1] Agree [16] Reply Report Abuse

  • Surendra, Dubai

    Sat, Jul 11 2020

    All bundel to fool da bakaths to say excitedly "modi, modi, modi"...

    DisAgree [1] Agree [20] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Jul 11 2020

    It has now been confirmed that entire India hates BJP ...

    DisAgree [3] Agree [20] Reply Report Abuse

  • Anticorrupt, Mangalore/ Kuwait

    Sat, Jul 11 2020

    He knows v well that India is majority Andh bhakt. Any sane person know that this guy is a bluff like his master. These guys stoop to any level to please their masters.

    DisAgree [2] Agree [22] Reply Report Abuse

  • Rolf, Dubai

    Sat, Jul 11 2020

    I trust Gomatha and Buffalo .

    DisAgree [4] Agree [19] Reply Report Abuse

  • KV Kamath, Mangalore

    Sat, Jul 11 2020

    Rolf, Dubai,

    Yeah, we can surely trust these animals because they keep on giving milk and calves in any economy. But still, wicked want to kill these dumb animals though there are enough vegetables,pulses which can nourish them. State and Union Governments are simply watching the terror leashed on these animals.

    DisAgree [9] Agree [2] Reply Report Abuse

  • AM, Mangalore

    Sat, Jul 11 2020

    Modi told him to announce this. All institutions are working and adjusting their things according to PMO guidelines. Reality in ground is business is completely devastated and majority of migrant workers are survive on MNREGA. This RBI stooge planted by Govt will empty the coppers and try to save the face of Modi

    DisAgree [3] Agree [30] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Jul 11 2020

    History Teacher ...

    DisAgree [3] Agree [27] Reply Report Abuse


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