The Reserve Bank of India (RBI) is working with all stakeholders in a bid to find a resolution for Punjab and Maharashtra Cooperative Bank crisis, said the central bank governor said on Saturday.
RBI is engaged with all stakeholders for resolution for Punjab and Maharashtra Cooperative Bank,” RBI Governor Shaktikanta Das said.
RBI Governor Das was addressing the keynote address at the 7th SBI Banking and Economic Conclave.
“The Indian economy’s medium-term outlook is still uncertain even though the country has begun re-opening after over two months of a nationwide lockdown, as demand and supply shocks due to the coronavirus still loom large,” said the governor of India’s apex bank.
Furthermore, the RBI Governor said that the outbreak covid pandemic is so far the biggest test of the flexibility and buoyancy of Indian economic and financial system. “The topmost priority for RBI is growth; financial stability is equally important,” Governor Das said.
“RBI has brought down the repo rate by 250 basis points since February 2019 to ease liquidity stress and provide financial stability in the economy,” said Governor Shaktikanta Das.
“Covid-19 crisis is the worst health and economic crisis in last 100 years with unprecedented negative consequences for output, jobs and well being. It dented the existing world order, global value chains, labour and capital movements across globe,” Governor Das said.
“Indian economy has started reporting signs of bouncing back to normalcy after easing of restrictions,” said RBI Governor.
“RBI has initiated several steps for protecting our financial system, support the economy in the current crisis,” he said.