Companies that failed to repay their loans to YES Bank include Dewan Housing Finance, Essel group, CG Power, the Anil Ambani group companies, and Videocon
"The need is to have a right set of policies and enabling framework which guide and support MSMEs to effectively handle their existing problems and venture into new areas," Das said
"This will surely not be a rescue plan. You will get to know when the scheme is out," a top SBI executive who did not wish to be named said, hinting that SBI might not take over YES Bank
The RBI governor also said that the impact of Covid-19 on India will be limited
Debt capital markets continue to shy away from the shadow banking sector
Monetary accommodation may not help in India
Reserve Bank of India (RBI) Governor Shaktikanta Das told Bloomberg in an interview on Tuesday that the central bank was ready to do whatever was needed to address a slowdown.
The benchmark 10-year Indian bond yield dropped 8 basis points (bps) to 6.26%
One of the issues that will come up for review is how much transmission of policy rate actions to the final customer has happened.
Regulating the distinct segments of these banks would be a challenging task, said Shaktikanta Das
Such write-offs of loans affect the capability of farmers to access debt for the next season in time, the RBI governor added
Real estate developers, battling a prolonged slowdown in demand, are struggling to raise funds to construct or complete projects
To keep inflation under specified level, the government in 2016 had decided to set up MPC headed by RBI governor entrusted with the task of fixing the benchmark policy rate (repo rate)
The development would attract higher foreign flows as many overseas funds are mandated to track global indices
Only a couple of sectors in India are likely to see some disruptions but alternatives are being explored to overcome those issues, he said
In an interview with PTI, Das said the government has remained within the limits set by the Fiscal Responsibility and Budget Management (FRBM) Committee for the budget deficit
He said the fallout of the outbreak of novel coronavirus in China needs to be closely monitored by "every policymaker" to tailor a swift response
In an interview with PTI, Das said so far no red flags have been raised but the central bank continues to monitor the situation closely
With this move, the central bank will do away with nearly eight decades of practice
Retail inflation based on consumer price index (CPI) soared to a near six-year high of 7.59% in January