‘Govt’s response to Covid-19 fiscally very responsible’: RBI Governor
Earlier this month, the RBI had approved the transfer of Rs 57,128 crore as surplus to the central government for the accounting year 2019-20.Updated: Aug 27, 2020, 12:03 IST
Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday praised the central government’s response to the coronavirus pandemic in the country.
“Government response to pandemic has been fiscally very responsible, prudent and very calibrated,” he was quoted as saying by news agency Press Trust of India.
Das was speaking at an ongoing business event.
He said that the debt resolution framework announced by the RBI is expected to give durable relief to borrowers facing Covid-related distress.
The RBI Governor further said that it is obvious that the banks are undergoing a lot of stress during this period, “what is more important is how banks react and respond to the challenge”.
“Proactive raising of capital will be crucial to improve resilience of banks and the financial sector,” he added.
Earlier this month, the RBI had approved the transfer of Rs 57,128 crore as surplus to the central government for the accounting year 2019-20. The decision was taken at the 584th meeting of the central board of the Reserve Bank of India chaired by Governor Shaktikanta Das.
The board reviewed the current economic situation, continued global as well as domestic challenges, and monetary, regulatory and other measures taken by the RBI to mitigate the economic impact of Covid-19 pandemic.
The bank has also set up an expert committee under veteran banker K V Kamath to suggest financial parameters for resolution of coronavirus-related stressed assets.
The committee is expected to submit its recommendations to the RBI next month (after the 30-day deadline expires).