Newdelhi:16/3/20:Reserve Bank of India Governor Shakitikanta Das today said that swift action has been taken by the RBI in coordination with Govt of India for the restructuring of Yes Bank
Reserve Bank of India Governor Shakitikanta Das today said that swift action has been taken by the RBI in coordination with Govt of India for the restructuring of Yes Bank.
Mr Das today called for an emergency press meet in RBI headquarters in Mumbai to address two important issues including the Yes Bank restructuring plan and fall out of Corona and its impact on the Indian economy.
Addressing the press, the apex Bank Governor reiterated that depositors’ money with the Yes bank is absolutely safe. Giving details of the restructuring plan, the governor said that there is no reason to undue worry or need to withdraw the money in a hurry. He added that the Indian banking system is safe and sound. The RBI Governor stated that as per the new scheme, Yes Bank moratorium will be lifted on Wednesday and the new board will assume the charge on 26th March. Mr. Das also said that the credible and sustainable plan of the revival of the yes bank also ensured that the identity of the bank will remain the same.
The RBI Governor said that if there is a requirement then RBI will provide the necessary support for Liquidity for Yes Bank.
Mr. Das informed that the RBI proposed to conduct another six months US Dollar sell/buy swap on March 23 to provide liquidity to markets. He informed that to further improve monetary transmission, RBI will conduct long-term repo operations LTRO in multiple tranches up to one lakh crore rupees at policy rate.
Speaking about Covid-19 and its impact on the Indian economy, the RBI Governor said that the second phase of the pandemic could affect the domestic economy in slowing down. He added that sectors like tourism, hospitality, and airlines are getting affected following the Covid 19 outbreak. He said that India is not immune to the pandemic and but at present, the domestic liquidity condition is in a comfortable state. The RBI Governor, however, stated that considering the severeness of the virus impact at this point, it is important to ensure the policy actions are carefully calibrated. He stated that the RBI has instructed all the banks to encourage digital payments. He also said that the RBI has several policy instruments at its disposal and the bank will use them at the right time. He added that RBI’s efforts are to see that its policy actions should not be premature nor delayed.