PM Narendra Modi meets financial regulators discusses measures to revive Covid-hit economy – Times of India: NEW DELHI: Prime Minister Narendra Modi on Thursday held a brainstorming session with financial sector regulators and mentioned numerous measures to revive the economic system hit exhausting by Covid-19 disaster.
In line with sources, the assembly mentioned numerous steps that regulators, particularly the Reserve Bank of India, can take to push financial progress staring on the threat of contraction.
PM Narendra Modi meets financial regulators discusses measures to revive Covid-hit economy – Times of India
RBI governor Shaktikanta Das, Sebi chairman Ajay Tyagi, Irdai chairman S C Khuntia and PFRDA chairman Supratim Bandyopadhyay had been within the assembly, which noticed presence of finance minister Nirmala Sitharaman, highway transport minister Nitin Gadkari, and commerce and business minister Piyush Goyal, amongst others.
Moreover, senior authorities officers attended the digital three-hour lengthy assembly.
The economic system is predicted to contract by 4.5 per cent throughout the present fiscal, as per the IMF newest projection.
The assembly additionally mentioned preparedness to cope with the post-Covid world and regulatory measures to assist obtain the target of Atmanirbhar Bharat.
It’s to be famous that the RBI since February took numerous measures, together with liquidity infusion and moderation of rate of interest to file low in its bid to keep up monetary stability and help progress.
Almost 40 per cent of Rs 20.97 lakh crore financial bundle comprised of a number of liquidity measures undertaken by the RBI.
The Reserve Financial institution of India (RBI) eased the monetary policy, lowered reserve necessities and launched liquidity within the economic system to the extent of virtually 3.9 per cent of GDP.
Moreover, Securities and Change Board of India (Sebi), Insurance coverage Regulatory and Improvement Authority of India (Irdai) and Pension Fund Regulatory and Improvement Authority additionally took measures to supply reduction to business and people.
The challenges earlier than the regulators throughout the post-Covid world additionally got here up for dialogue, the sources mentioned.
The assembly additionally got here at a time when the federal government is contemplating one other spherical of fiscal stimulus to spice up demand within the economic system.
The Worldwide Financial Fund (IMF) on Wednesday mentioned India has house for each fiscal and financial measures, but it surely must shortly comprise the unfold of Covid-19 to make financial restoration sustainable.
IMF additionally mentioned whereas monetising fiscal deficit could also be inevitable, India ought to chart a reputable fiscal consolidation roadmap to make sure regulatory independence.
Emphasising on the essential function of the monetary sector in supporting the economic system, PM Modi on Wednesday requested bankers to relook at their practices to make sure secure credit score progress and to not flip down bankable proposals on apprehensions of potential unhealthy loans.
Throughout a three-hour lengthy digital assembly with CEOs of enormous private and non-private sector banks together with heads of non-banking monetary corporations (NBFCs), the Prime Minister assured them that the federal government is able to take all steps to help the monetary sector.
PM Modi exhorted bankers to encourage small entrepreneurs, self-help teams and farmers to make use of institutional credit score so as to develop.
“Every financial institution must introspect and take a relook at its practices to make sure secure credit score progress. Banks shouldn’t deal with all proposals with the identical yardstick and want to tell apart and establish bankable proposals and to make sure that these do not undergo within the identify of previous NPAs,” he had mentioned.