PMC Bank Crisis

PMC Bank Crisis

BE/RBINOTE/36/2020

Shaktikanta Das

Delivering the Keynote address at the seventh SBI Banking and Economic Conclave, the Reserve Bank of India Governor said that RBI is working with all stakeholders for resolution for Punjab and Maharashtra Cooperative Bank.  Following were the details given by the Governor.

  • The Indian economy’s medium-term outlook remains uncertain even though the country has started re-opening after over two months of a nationwide lockdown, as demand and supply shocks due to the coronavirus still loom large.
  • The covid pandemic represents so far the biggest test of robustness and resilience of our economic and financial system and the topmost priority for RBI is growth; financial stability is equally important.
  • RBI has cut the repo rate by 250 basis points since February 2019 to alleviate liquidity stress and provide financial stability in the economy,” said Governor Shaktikanta Das.
  • Covid-19 crisis is the worst health and economic crisis in last 100 years with unprecedented negative consequences for output, jobs and well being. It dented the existing world order, global value chains, labour and capital movements across globe.
  • The covid pandemic represents so far the biggest test of robustness and resilience of our economic and financial system and the topmost priority for RBI is growth; financial stability is equally important.
  • Indian economy has started showing signs of going back to normalcy after easing of restrictions.

The Governor added that RBI has taken several measures to protect our financial system, support the economy in the current crisis.

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