Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that the country’s banking system “continues to be sound and stable” during the covonavirus pandemic.
“We have not exhausted our ammunition, whether on rate cuts or other policy actions,” Das said. He added that being overly risk-averse is self-defeating for banks.
The RBI Governor was speaking at an event organized by Business Standard.
Das further added, “While the moratorium on loans was a temporary solution in the context of lockdown, resolution framework is expected to give a durable relief to borrowers facing COVID19 related stress”
“Measures taken by the RBI are intended to deal with the specific situation of COVID19 and can not be, obviously permanent,” said Das.
Das said there is a scope for banks to improve their ability to avert frauds from happening and added that their risk frameworks should be able to smell vulnerabilities.
The Governor said, overall, the banking system continues to be sound and stable and the lenders will have to evolve a new model of growth in the times to come.
He said the RBI will withdraw its COVID-19 pandemic-related dispensations in a calibrated manner, but will not do so very soon.
Appreciating the work done by the government in response to the crisis, Das termed it as fiscally responsible, prudent and well calibrated.
Comments
0 comment