Indian Economy returning to normalcy: RBI Governor
New Delhi : With ease of restrictions in lockdown, the Indian economy has started showing positive signs of moving towards normalcy, said RBI governor Shaktikanta Das on Saturday.
He mentioned that in post Covid-19 time, a strict trajectory need to be followed as India prepares for unwinding the counter-cyclical regulatory measures.
The financial sector should return to normal without relying much on the regulatory relaxations, he added.
"Indian economy has started showing signs of going back to normalcy after easing of restrictions," governor Das said at the 7th SBI Banking and Economics Conclave.
"Policy action in medium-term would require a careful assessment of how the crisis unfolds," he said, adding that building buffers and raising capital will be crucial not only to ensure credit flows but also to build resilience in the financial system.
The country's banking and financial segment is capable of recovering from the current situation, he reaffirmed.
In these challenging times, banks have to improve their governance and sharpen their risk management, he said. Banks will also have to raise capital in an anticipatory basis instead of waiting for a situation to arise, Das noted.