Connect with us

Hi, what are you looking for?


RBI is confident of dealing with any emergent challenge: Governor

“The Reserve Bank of India is committed to and confident in dealing with any new challenges that may arise. Though the current European crisis may have an impact on inflation in India, the likelihood of a prolonged breach of the tolerance band is remote,” said Shaktikanta Das, Governor RBI, while addressing the CEOs at the CII National Council Meeting.

Das said that RBI has resisted the ‘temptations’ and ‘expectations’ of reversals in monetary policy, in the past when CPI inflation was temporarily higher than its tolerance limit of 6%. RBI maintains its pro-growth stance. Most of the 60 high frequency indicators that RBI monitors regularly are in the ‘green’. India has a very strong foreign exchange reserve position allowing it to finance a higher level of current account deficit, should the need arise. While the US and the European nations have started to reduce asset purchases, RBI stopped its asset purchase program in October itself, and in that sense RBI is not behind the curve, he said. 

Das opined that the banks are in a strong position. The capital adequacy at 16%, at the system level, is higher than the regulatory requirement. The gross NPAs of the banks are at an all-time low of 6.5%.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PR Newswire


Copyright © Glocal Infomart Pvt Ltd. All rights reserved. Usage of content from website is subject to Terms and Conditions.