New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das today said that the new measures to restructure the loan will remove the problem of companies facing cash shortage and will help in bringing the economy back on track. Das said in an interview, “While the health of banks is very important, on the other hand there is a lot of pressure on companies due to Kovid.” He said that this plan of RBI will replace the loan moratorium which ends this month. Das said the moratorium was an immediate solution to the lockdown and the problem is not a permanent solution.
The economy has been severely affected due to coronavirus infection and its associated lockdown. In such a situation, the government wants to support the troubled economy but at the same time it does not want to weaken the financial sector. Banks’ NPAs are nearing a two-decade high. Banks are struggling to accelerate credit growth to bring the economy back on track. For the first time in more than four decades of the Indian economy, the negative growth rate is being feared. Even before the Corona transition, the banks’ debt had increased drastically.
