New Delhi | Jagran Business Desk: Amid concerns over economic slowdown due to COVID crisis, RBI Governor Shaktikanta Das said that country's banking system “continues to be sound and stable” while adding that the central bank has not exhausted "all its ammunition" in its fight against the pandemic.
Delivery a keynote address at ‘Unlock BFSI 2.0‘ event by Business Standard, the RBI Governor said “We have not exhausted our ammunition, whether on rate cuts or other policy actions,”
Warned banks against being overly risk-averse, he said that lenders will not be able to 'win their bread' if they do not carry out their basic task.
He also said that there is considerable room for improvement in banks to avoid frauds.
On the financial stress being faced by banks, the central bank head said how banks react and respond to the challenge is important. He added that a proactive raising of capital will be crucial to improve the resilience of banks and the financial sector
"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 Covid-19-related stress," Das said.
He further said that the central bank’s response to COVID-19 is unprecedented and that a “very calibrated and cautious plan (for the economy) is needed post-COVID-19”.
He also called for a careful trajectory to be followed for unwinding in the post covid-era and expressed optimism that the financial sector will return to normalcy.
Appreciating the work done by the government in response to the crisis, Das termed it as fiscally responsible, prudent and well-calibrated.
Posted By: Rakesh Kumar Jha
