Business

Economic Growth Top Priority, Says RBI Governor Shaktikanta Das

Economic Growth Top Priority, Says RBI Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das is in conversation with State Bank of India chairman Rajnish Kumar at the 7th SBI Banking & Economics Conclave through a video call. The event comes at a time when the government has eased a slew of restrictions imposed in March to curb the spread of the coronavirus pandemic, which has pushed an already-slowing economy into a standstill. Many economists have warned of a recession this year due to the damage caused by the COVID-19 disease.

Here are highlights:

  • COVID-19 worst health and economic crisis in last 100 years
  • RBI has taken number of important historic measures to protect financial system
  • Policy measures have worked so far 
  • Would like to highlight key aspects of key measures already taken: 
    • Monetary policy measures: RBI already had "accommodative" stance before onset of COVID-19
    • Since February 2019, RBI has cut rate by 250 basis points (2.5 percentage points)
    • Both conventional and unconventional liquidity measures were taken to boost market confidence, ease liquidity stress
    • RBI has announced liquidity measures worth Rs 9.57 lakh crore since February, equivalent to 4.5% of GDP
  • Economic growth topmost priority for RBI
  • Equal priority has to be given to aspect of financial stability
  • Redemption pressure on NBFCs and mutual funds needs to be monitored