RBI Governor
Shaktikanta Das on Thursday said many fast indicators are showing an uptick in
economic activity and the Reserve Bank is quite optimistic about its 9.5 per
cent GDP growth estimate for FY2021-22 at present.
He
said the impact of the second wave of COVID-19 has waned by August,and economic
growth will be better from the second quarter onward on a sequential basis.
Speaking at an event
organised by The Indian
Express and Financial
Times, Das said the RBI has decided to give more emphasis on growth
because of the pandemic and operate in the 2-6 per cent inflation band set by
the government for it.
The central
bank will seek to gradually move towards achieving the 4 per cent target over a
period of time, he said, adding that the possibility of a sustained increase in
inflation is unlikely.
Easy liquidity conditions
in the global markets are among the conditions which are leading to a surge in
markets domestically, he said, making it clear that there is no evidence of the
high asset prices affecting the inflation situation.
A call on continuing with
the accommodative stance or not will be taken by the rate-setting panel of the
RBI, he said, replying to a question and added that it does not see high
inflation getting generalised.
The banking system's gross
non-performing assets ratio stood at 7.5 per cent as of the end of June quarter,
and the same is “manageable” as of now, Das said, underlining that lenders also
have adequate capital buffers.
To a question on high
haircuts taken by banks in debt resolutions, he said there is scope for
improvement in the functioning of IBC which can include legislative changes and
also time taken for a case by the bankruptcy courts.
On
cryptocurrencies, Das said the RBI has conveyed its "serious and major
concerns" about cryptocurrencies to the government and now the government
will have to decide on how to deal with the proliferation of such platforms.
Das said that we need
“credible answers” on contribution of private cryptocurrencies to the Indian
economy going forward.