Indian Economy Showing Signs of Going Back to Normalcy: RBI Guv

“The topmost priority for the RBI is growth; financial stability is equally important,” Das said.

With the easing of restrictions, the Indian economy has stared showing signs of restoring normalcy, RBI Governor Shaktikanta Das said while delivering the keynote at the 7th SBI Banking and Economic Conclave on Saturday, 11 July. Das also added that the topmost priority for the central bank is growth.

“The topmost priority for the RBI is growth; financial stability is equally important,” Das was quoted as saying by news agency PTI.

Das also said Indian companies and industries respond better in a crisis. Here are the highlights from his address:

• COVID-19 is the worst health and economic crisis in the last 100 years with unprecedented negative consequences for output, jobs and well being.
• RBI has taken several measures to protect our financial system, support the economy in the current crisis.
• The central bank has strengthened its offsite surveillance mechanism to identify emerging risks.
• Indian economy has started showing signs of going back to normalcy after easing of restrictions.
• We need a structured mechanism with legal backing to deal with stressed assets.
• RBI policy action for medium-term will require a careful assessment of how the crisis unfolds.
• Building buffers, raising capital crucial for ensuring credit flows and to build resilience in financial system.

(With inputs from PTI)