RBI governor Shaktikanta Das on Friday said that the apex bank is not playing safe on giving GDP estimates. The Reserve Bank of India will start giving estimates when there is greater clarity with respect to the pandemic and economy, he said.
In an exclusive interview to CNBC Awaaz, Das further added that India’s credit-GDP ratio in India is low and experts feel it has to increase. "Giving GDP estimates is very tough in the current uncertain environment. RBI should not be changing GDP estimates every now and then," said Das.
Talking about the current economic situation, he said that the economy will recover if the infection curve flattens or a vaccine is found. "India’s economy has a core resilience, it will recover," he said.
Das also said that KV Kamath-led panel will be declaring financial parameters for resolution of corporate loans in a month. The panel will recommend and notify rules to the RBI. The central bank has constituted an expert committee under the chairmanship of KV Kamath to make recommendations on the proposed resolution plan for stressed borrowers impacted by COVID-19.
The panel will make recommendations on the required financial parameters to be factored in the resolution plans, with sector-specific benchmark ranges for such parameters. RBI panel will also review how MPC policy has worked. Das further stated that three new members will join MPC.
The RBI governor also said that moratorium was a temporary solution to respond to lockdown and resolution framework is a permanent solution.
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