Discussing Public Sector Banks Privatisation With Centre: Shaktikanta Das

Governor Shaktikanta Das emphasized that a healthy banking sector, with a strong capital base and ethics-driven governance, remained a policy priority

Discussing Public Sector Banks Privatisation With Centre: Shaktikanta Das

The Governor also said the ongoing revival of economic activity should continue unabated

The RBI is discussing public sector banks privatisation with the centre, Governor Shaktikanta Das said on Thursday and added that the "process will move on." Mr Das emphasized that a healthy banking sector, with a strong capital base and ethics-driven governance remained a policy priority.

The government is looking at overhauling the banking sector, which is reeling under a heavy load of non-performing assets that are likely to rise further in wake of the pandemic.

Meanwhile, the finance minister Nirmala Sitharaman had provided an assurance last week that not all banks will be privatised and wherever it happens, the interest of the employees will be protected.

The Governor also said the ongoing revival of economic activity should continue unabated, adding, "don't see downward revision in RBI's 10.5 per cent growth estimate for FY22. The RBI has predicted a growth rate of 10.5 per cent for India's GDP for the next year. 

The RBI is committed to using all policy tools to support the economic recovery while preserving price stability and financial stability, Mr Das emphasized.

Admitting that the spike in new pandemic infections is a matter of concern, the governor said the country is equipped this time to tackle the situation. The country added 53,476 Covid-19 cases on Wednesday alone, marking the highest daily rise since October last year.