Reserve Bank Governor Shaktikanta Das has asked banks to be ready in view of the current economic conditions.
In view of the current economic situation of the country, RBI Governor Shaktikanta Das has asked banks to be ready. In an interaction with the heads of public sector banks, the RBI governor said that the current economic conditions can pose some challenges, so banks should be ready to compete with full vigor.
A statement issued by the Reserve Bank said, “The governor told the banks to be fully prepared to meet the emerging challenges.” In this case, he specifically asked to work in a coordinated manner in the solution of stressed assets. “The RBI governor said this at a time when the country’s gross domestic product (GDP) growth is at a six-year low.
According to government data, GDP growth has reached 4.5 percent in the second quarter of the current financial year. In view of this, the Reserve Bank has also reduced the forecast of economic growth for the current financial year to 5 percent. However, Shaktikanta Das also noted that the banking sector is improving and it remains strong.
Along with this, Shaktikanta Das also discussed with the bank heads to bring the benefit of the cut in the repo rate to the last beneficiary. Explain that this year, the RBI had cut the repo rate 5 times, citing economic slowdown. However, the central bank did not change the repo rate in the review conducted last week. But the RBI has definitely expressed concern about inflation. With this, the RBI has also increased the inflation rate estimate. This means that people will not get relief from inflation till Holi.