Fix corporates first to lift credit flow, says Viral Acharya

RBI deputy governor wants companies to take steps to reduce debt

Reserve Bank of India (RBI) Deputy Governor Viral Acharya said without fixing the corporates, it would not be possible to get credit going in the economy.

The deputy governor made this comment while discussing what exactly could have crippled the economy— was it lack of credit supply or lack of credit demand?

"Is it the bank lending channel which caused the economy to slow down, because the supply of credit from banks affected by non-performing loans is not too high? In our case, in a large measure, it's probably the public sector banks which have ended with the large proportion of