Shaktikanta Das on liquidity: RBI to take steps if liquidity shortage arises, but won’t allow ‘loose’ money

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Published: January 7, 2019 4:25:29 PM

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that necessary steps would be taken if liquidity shortage arises in the economy, even as liquidity needs are largely met at present.

he meeting took place a day ahead of the crucial meeting of the central board of RBI here, which will take up a host of contentious issues, including the PCA norms.Earlier today, Shaktikanta Das met various associations of small and medium enterprises in the national capital.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that necessary steps would be taken if liquidity shortage arises in the economy, even as liquidity needs are largely met at present. He also cautioned that the issue of liquidity has to be dealt with the caution and RBI would not like it to become a situation of ‘loose’ money.

Earlier today, Shaktikanta Das met various associations of small and medium enterprises in the national capital and also informed that he will meet non-banking financial companies (NBFCs) to get a perspective on liquidity needs.

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He also said that the banks have been asked to look at the viability of individual proposals for loan restructuring of Micro, Small and Medium Enterprises (MSMEs). “We are constantly monitoring it,” he said on the liquidity issue. “We believe liquidity needs are largely met,” he also said.

Talking about non performing assets (NPAs), Shaktikanta Das said that the issue of bad loans of public sector banks (PSB) engages their attention on a daily basis, and as the recent RBI reports showed, there has been considerable amount of improvement.

Das would be meeting NBFC representatives in Mumbai on Tuesday. The tomorrow’s meeting would be used to get the perspective from the NBFCs, he added.

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