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RBI discussing bank privatisation issue with govt: Shaktikanta Das

Das says growth momentum is going as per RBI's estimate and revival of economic activity should continue unabated; he adds there could be no downward revision in RBI's 10.5% growth estimate for FY22

twitter-logoBusinessToday.In | March 25, 2021 | Updated 12:39 IST
RBI discussing bank privatisation issue with govt: Shaktikanta Das
RBI Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das has said the central bank and the government are discussing the issue of privatisation of PSBs (public sector banks), saying the "process will go forward".

Das, while speaking at the India Economic Conclave today, also said he does not think there is a difference of opinion between the RBI and govt on the issue of cryptocurrencies. "We have flagged major concerns on cryptocurrencies to the government; it is still under examination, and the Centre will come out with a decision on it."

Also read: Fitch raises India's FY22 GDP growth projection to 12.8% from 11%

He also spoke on the issue of rising Covid-19 cases in India. Das said at this point, he does not foresee the kind of lockdown experienced last year. He, however, said the renewed surge in COVID-19 cases is a matter of concern. "But, we have additional insurances this time to tackle that," he said.

Das also talked about the current economic situation in the country. He said the RBI will try to keep  rupee stable, and assured there is no fight between the central bank and bond market in India. "Relationships need not be combative," he added.

The RBI government said the growth momentum is going as per the RBI's estimate. "Revival of economic activity should continue unabated. I don't see downward revision in the RBI's 10.5 per cent growth estimate for FY22," he added.

Also read: RBI announces Rs 10,000 cr worth OMO for sale, purchase of govt securities

He said the RBI has committed to using all policy tools to support recovery in the economy while preserving price stability, and financial stability.

He also spoke about the rise in digital transactions in the country. He said the RTGS has multi-currency capabilities, and there is scope to explore if its footprint can be expanded beyond India. "We processed 274 crore digital transactions last year to provide direct benefit transfer to people," he said.

Das also said effective regulation was a priority for the RBI. "But regulation should not constrain innovation in fintech space," he said.

He also said that the RBI was doing everything in its reach to maintain the banking sector health with a strong capital base, though ethics-driven governance remains a policy priority.

Also read: SC refuses to extend RBI loan moratorium, waive interest entirely

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