ISO 9001:2015 Certified
closex Call Us 11-23320714, 23721504, ficci@ficci.com

 Upcoming Event
to forge a partnership on Technology Commercialization Initiative, FICCI-AMITY and IC2 Institute University

RBI's Das says economy showing signs of stability, focus on 5 areas for revival 

Live Mint , Sep 16, 2020

Reserve Bank of India governor Shaktikanta Das on Wednesday said latest data suggests some stabilization in economic activities in the second quarter of this fiscal.

"Revival of the economy will be gradual," said Das, addressing a webinar organised by industry body FICCI.

Emerging markets have bounced back and cut in policy repo rates has eased key operations, he said, adding current G-sec borrowing rates are the lowest in last 10 years and bond yields have softened. " ₹3.2 trillion of bond issuance in corporate bond market has happened till 28 August."

"We have taken care of MFIs (micro-finance institutions), small-sized NBFCs and cooperative banks. We are in constant engagement with NHB, Sidbi to monitor the market situation and measures will be taken by RBI when required," said the governor.

RBI will focus on five key areas to assist a revival of the economy in the coming few months, Das said.

"There are five key areas that I propose to focus on that I think will determine stability and step up India's growth in the medium term. First is human capital with specific emphasis on education and health; second is productivity; exports which is leading to India's role in the global value chain; fourth tourism; food processing associated productivity areas," said Das.

In March, RBI had announced loan moratorium to provide relief to borrowers and enable continuity of viable businesses impacted by covid-19 pandemic. According to RBI data, nearly half of the customers accounting for around half of outstanding bank loans availed of the benefit. The central bank had initially allowed moratorium for the three months ended 31 May but later extended it till end-August.

Later, RBI allowed debt recast for both corporate and retail borrowers. Lenders can extend the repayment period by a maximum of two years, allowing respite in a situation where covid-19 has left millions jobless, curtailing their ability to repay existing debt.

RBI had also announced the constitution of an expert panel under K.V. Kamath to suggest financial parameters for resolution of stressed assets amid the crisis. The panel is expected to submit its recommendations to RBI, which will notify them along with modifications, if any, in 30 days.

Under the resolution framework, RBI has allowed conversion of any interest accrued, or to be accrued, into another credit facility, or granting of moratorium and/or rescheduling of repayments, based on an assessment of income streams of the borrower, up to two years.

At the FICCI webinar, Dinesh Kanabar, founder and CEO of Dhruva Advisors, a tax and regulatory boutique firm, said,"It will take 62% people believe that the economy will take more than a year to come back to normalcy. 60% believe that the capacity utilisation will be below 50%. 49% people believe that the unlocking will have no impact on the company's cash flows. Earlier in June 79% believed that there will be no impact of the unlocking on cash flows."

 

 

Also Read

RBI battle ready to revive the economy, India will certainly bounce back: Governor RBI

RBI battle-ready to meet economy's needs: Governor Shaktikanta Das     

Benign financing conditions spurred record issuance of corporate bonds worth around Rs 3.2 Lakh crore says RBI Governor     

Will take necessary measures to promote growth: RBI Guv Shaktikanta Das     

Economic recovery likely to be gradual: RBI Guv Shaktikanta Das     

Covid-19: Indian economy to recover gradually, says RBI Governor     

India's economic recovery to be gradual, says RBI Governor Shaktikanta Das     

Economic recovery likely to be gradual: Das     

India has big opportunity in food processing, tourism: RBI governor     

Vulnerability of NBFC sector still a concern: RBI governor     

Will take necessary measures to promote growth: RBI Governor     

RBI governor Shaktikant Das: Indian economy will recovery gradually     

Will take necessary measures to promote economic growth: RBI Governor     

Recovery of the pandemic-hit Indian economy will be gradual, says RBI Guv Shaktikanta Das     

Economic recovery in India likely to be gradual: RBI governor Shaktikant Das     

RBI battle ready to take steps for economic recovery, says RBI Governor Shaktikanta Das     

RBI optimistic of economic revival, enlists areas to spur growth     

RBI 'battle ready' to kick-start growth, says Shaktikanta Das     

Economy showing signs of stability, will take necessary measures to promote growth: RBI Governor Das     

Loan resolution plan had to be a balanced call, says RBI Governor Shaktikanta Das     

Indian economy showing signs of stability, RBI to take necessary measures: Shaktikanta Das     

Economic recovery likely to be gradual: RBI Governor Shaktikanta Das     

Shaktikanta Das says RBI to take more steps, if required, to battle COVID-19: Highlights     

Will take necessary measures to promote growth: RBI Governor     

Economic recovery still not well entrenched; RBI battle ready to support growth: Governor Das     

RBI stands battle-ready to take whatever steps needed for Covid-hit Indian economy: Governor Shaktikanta Das     

COVID impacted economy, may see gradual recovery: RBI Governor Shaktikanta Das     

Economy showing sign of stability, but recovery to be gradual: RBI Governor Das     

RBI assures industry of taking all necessary measures to ensure liquidity in system & promote economic growth     

Economic recovery likely to be gradual, RBI stands battle-ready: Shaktikanta Das     

RBI's Shaktikanta Das bats for small depositors, defends loan restructuring     

Economy showing sign of stability, but recovery to be gradual: RBI Governor Das     

RBI battle ready to revive the economy, India will certainly bounce back: Governor RBI     

Covid-hit Indian economy to witness gradual recovery, says RBI Governor Shaktikanta Das     

Economy showing sign of stability, but recovery to be gradual: RBI Governor Das     

Economic recovery still not well entrenched, says RBI Governor     

RBI Guv Shaktikanta Das: Depositors' money topmost priority, even as one-time rollover for businesses is considered     

Will take necessary measures to promote growth: RBI Governor     

Shaktikanta Das says RBI prepared for more measures to fight COVID pandemic     

RBI chief says India's recovery not entrenched, will only be gradual     

RBI Governor highlights five key areas that will determine India's growth in the post-COVID world     

COVID-impacted economy, may see gradual recovery: RBI Governor     

Covid impacted economy, may see gradual recovery: RBI Guv     

Covid-19: Indian economy to recover gradually, says RBI Governor     

RBI stands battle-ready to take whatever steps need to be taken for economy: Guv     

'GDP a reflection of ravages of COVID-19': RBI Guv Shaktikanta Das says economic recovery likely to be gradual     

Economy showing sign of stability, but recovery to be gradual: RBI Governor Das     

Covid impacted economy, may see gradual recovery: RBI Guv     

Covid-19: Indian economy to recover gradually, says RBI Governor     

Economy showing sign of stability, but recovery to be gradual: RBI governor Shaktikanta Das     

Will take necessary measures to promote growth: RBI Guv Shaktikanta Das     

RBI stands battle-ready to take whatever steps needed for Covid-hit Indian economy: Governor Shaktikanta Das     

Economic recovery likely to be gradual: RBI Guv Shaktikanta Das     

Covid-19: Indian financial system to recuperate step by step, says RBI Governor     

Will take necessary measures to promote growth: RBI Governor     

RBI battle-ready, keen to take obligatory steps to advertise progress: Shaktikanta Das     

Economy showing sign of stability, but recovery to be gradual: RBI Governor Das     

Covid impacted economy, may see gradual recovery: RBI Governor     

Will take all necessary measures to ensure liquidity & promote economic growth: RBI Governor     

RBI Governor Shaktikanta Das said - The impact on the economy due to Corona will gradually reduce     

COVID impacted economy, may see gradual recovery: RBI Governor Shaktikanta Das     

Will take necessary measures to promote growth: RBI Governor     

Financial reforms not reached full velocity, tourism sector can turn out to be engine of financial development     

Interest of bank depositors has to be protected: RBI governor Shaktikanta Das     

India has tremendous potential and will certainly bounce back: RBI Governor     

Some economic indicators showing signs of stabilisation, but recovery not 'fully entrenched': RBI Governor     

RBI governor Shaktikanta Das dashes hopes of V-shaped economic recovery     

RBI rules out relaxation in loan recast: 'Must protect investors'     

RBI Das says COVID debt recast balanced depositor-borrower interests     

Economic recovery in India likely to be gradual: RBI governor Shaktikant Das     

Markets maintain gains on global cues, auto stocks rise (Roundup)     

RBI Governor Shaktikanta Das says India’s economic recovery likely to be gradual     

Will take essential measures to advertise enlargement: RBI Governor     

Economic recovery in India likely to be gradual: RBI governor Shaktikant Das     

RBI is 'Battle Ready' to save ailing economy amid pandemic, says Governor Shaktikanta Das     

Economic reform still not done: RBI Governor Shaktikanta Das     

Indian economy likely to recover gradually amid COVID-19: RBI Guv     

RBI taking all necessary measures to promote economic growth: Guv     

RBI stands battle-ready to take whatever steps need to be taken for economy: RBI governor     

Economic recovery still not well entrenched, RBI is 'battle ready': RBI Guv     

RBI stands battle-ready to take steps for economy: RBI governor     

Economy may see gradual recovery but RBI battle-ready: RBI Governor     

Covid impacted economy, may see gradual recovery: Shaktikanta Das     

Economy showing signs of stability: RBI governor     

RBI governor says India's economic recovery is likely to be gradual as coronavirus still rages     

Will take necessary measures to promote development: RBI Governor     

Will take all necessary measures to ensure liquidity & promote economic growth: RBI Governor     

RBI battle-ready, willing to take necessary steps to promote growth: Shaktikanta Das     

Loan resolution, tourism & processed food can drive economic revival: RBI Governor     

Will take necessary measures to promote growth: RBI Governor     

Will take necessary measures to promote growth: RBI governor Shaktikanta Das     

Event:

 FICCI National Executive Committee Meeting: Keynote address by Mr Shaktikanta Das, RBI Governor to Members of FICCI