RBI Governor Shaktikanta Das Assures People's 'Money in YES Bank Safe', Says 'COVID19 Could Impact India Directly Through Trade Channels'
Reserve Bank of India Governor Shaktikanta Das said the rescue plan for crisis-hit YES Bank is credible and sustainable, adding that the restructuring plan is first of its type. He claimed the growth momentum in India would also be impacted somewhat due to COVID-19 outbreak.
Mumbai, Match 16: Reserve Bank of India Governor Shaktikanta Das on Monday said the rescue plan for crisis-hit YES Bank is credible and sustainable, adding that the restructuring plan is first of its type. He mentioned about lifting of moratorium from YES Bank to take place on Wednesday from 6 pm onwards, afterwhich depositors can withdraw money.
Addressing a press conference on Monday, the RBI Governor said, "I would like to convey to the depositors of YES Bank, through you, that their money is completely safe and there is nothing to worry. There is no reason for any undue worry." Adding more, he said that swift action has been taken by the RBI and government of India and the lifting of moratorium will be on Wednesday at 6 pm. RBI Issues Directives for Banks Amid COVID-19 Spread in India, Says 'Banking Services Should Not be Disrupted'.
Informing about the new board constitution for the YES Bank, Das said, "The new Board will assume its position and the office of the administrator will cease to exist on 26th of March." He also mentioned that perhaps for the first time public-private partnership has been to done for the revival of a private sector bank. Das claimed that participation of private sector banks in particular demonstrates the confidence of major players in the banking sector in the revival plan.
Apart from the YES Bank issue, Das also spoke on coronavirus impact on Indian economy. He said, "India is not immune to this pandemic, already more than 100 cases have been reported. Effort are being mounted by the govt on war-footing. COVID19 could impact India directly through trade channels, in which exposure to China is really high."
Expecting in impact of global slowdown in the Indian economy, the RBI Governor said, "Second round of effects of the pandemic could operate through a slowdown in the domestic economic growth & it would obviously be a result of synchronised slowdown in global growth and as a part of that, the growth momentum in India would also be impacted somewhat."
However, Das claimed that Indian econmy is relatively insulated from global value chain. He said, "As far as Indian economy is concerned, India is relatively insulated from global value chain, to that extent impact on India will be less. But India is integrated to global economy so there'll be some impact. We're evaluating and we'll announce it when we hold Policy meeting." RBI Says Ready for COVID-19 Impact on Indian Economy, Eases Norm on US Dollar Transactions to Provide Liquidity to Forex Market.
Earlier, RBI issued a statement and asked all banks to take appropriate measures. RBI also asked the banks to put in place business continuity plans to prevent any disruption of services due to the rising cases of deal with coronavirus outbreak.
(The above story first appeared on LatestLY on Mar 16, 2020 04:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).