RBI Governor Shaktikanta Das on economic recovery, cryptocurrency, privatisation of state-run banks and more

Reserve Bank Governor Shaktikanta Das on Thursday expressed confidence that the new wave of coronavirus infections would not impact economic recovery and maintained the RBI's recent 10.5 per cent growth forecast for the coming fiscal year. The RBI governor's assurance assumes significance amid apprehensions about surging new COVID-19 infections and resultant lockdowns being clamped in many cities.

Economic recovery

"Revival of economic activity should continue unabated and I don't see a downward revision in 10.5 per cent growth estimate for FY22 which RBI has given last month," Das said at a conclave, adding he also does not foresee a repeat of the nationwide lockdown that the country witnessed last year, as per a report by PTI.

The governor said though infections are surging in many parts of the country, with the financial nerve-centre Mumbai recording the highest daily count till date in 2021 at over 5,000 on Wednesday, he does not see nationwide lockdowns again.

Cryptocurrencies

On cryptocurrencies, he said the RBI has flagged major concerns to the government and it is still under examination. "I do not think there is difference of opinion between RBI and government on cryptocurrencies," he said.

Privastisation of state-run banks

On the government move to privatise more state-run banks, he said the central bank is in discussions with the government on the same and that the process will go forward.

With government borrowing at record high leading to a soaring yields and forcing the Centre to cancel the last round of benchmark security auctions of Rs 20,000 crore on Monday, Das said there is no fight between the central bank and the bond market and called for a relationship that is not combative, as per the report.

He also said the RBI will ensure that the rupee is kept stable.