RBI Guv exhorts people to go digital amid coronavirus crisis

RBI Governor Shaktikanta Das on Friday nudged all to promote digital transaction amid the heavy bearing on the economy on the back of fast spreading coronavirus disease which has claimed thousands of lives globally.

In spite of the very challenging environment, "I remain optimistic", Das said.

In a very unconventional and unprecedented move, the Reserve Bank in an early morning conference announced a huge Rs 3.74 lakh crore liquidity support to the banking sector, and decided to cut the key repo rate by a significant 75 basis points of 0.75 percentage points to 4.4 per cent.

"It is worthwhile bearing in mind that the macroeconomic fundamentals of the Indian economy are sound and, in fact, stronger than what they were in the aftermath of the global financial crisis the fiscal deficit and the current accountdeficit are now much lower; inflation conditions are relatively benign;and financial volatility measured by change in stock prices from recent peaks and average daily change in the exchange rate of the rupee is distinctly lower," Das said.

"COVID-19 is upon us; but this too shall pass. We need to remain careful and take all precautionary measures. I leave you with this comforting thought. Stay clean. Stay safe. Go digital," he said.

Go digital call by the governor assumes significance as social distancing is being emphasised upon to avoid the spread of the deadly virus. Using paper currency has the potential risk of transmittingthe virus from one person to another.