Economy

Ready for COVID-19 impact: RBI Governor

RBI Governor Shaktikanta Das, addressing a press conference held in Mumbai on Monday.

RBI Governor Shaktikanta Das, addressing a press conference held in Mumbai on Monday.   | Photo Credit: PAUL NORONHA

Shaktikanta Das urged the depositors of the troubled bank that there is no need for them to rush to withdraw their money.

Amid a carnage in the financial markets, the Reserve Bank of India on Monday said it was ready to take any policy measure to mitigate the effects of the coronavirus outbreak on the economy.

Also read: Yes Bank: ED summons Anil Ambani

At an unscheduled press conference to assuage market participants, RBI Governor Shaktikanta Das also assured depositors of the beleagured Yes Bank that the reconstruction was aimed at ensuring the safety of depositors’ money. He assured that central bank will provide liquidity to Yes Bank if needed, after the moratorium on withdrawals is lifted on March 18.

Mr. Das urged the depositors of the troubled bank that there is no need for them to rush to withdraw their money.

“Yes Bank has enough liquidity to meet any requirement. If there is a requirement, RBI will provide necessary liquidity support to meet its requirements. So that is a comforting factor for the depositors that the RBI will support Yes Bank if liquidity is required,” he added.

Also read: The public unravelling of Yes Bank

Mr. Das said: “The RBI has several instruments at its command, and stands ready to take all necessary measures to ensure that the effects of COVID-19 pandemic on the Indian economy are mitigated and financial markets continue to function normally.”

No rate cut

However, market participants who were expecting an announcement of a cut in rates were disappointed.

 When asked why the interest rates were left unchanged Mr. Das said, “According to the prevailing law, the rate cut call has to be taken through the Monetary Policy Committee. But I don’t rule out anything.”

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Printable version | Apr 2, 2020 3:33:22 AM | https://www.thehindu.com/business/Economy/ready-for-covid-19-impact-rbi-governor/article31085377.ece

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