COVID-19 will affect Indian economy; RBI ready to mitigate the impact: Shaktikanta Das

The RBI Governor Shaktikanta Das on Monday said that Indian market is expected to be impacted by the outbreak of novel coronavirus. India is not immune to the spread of the virus as over a hundred cases have been reported in the country. It will affect India’s financial markets and the economy.

After as many as 43 central banks all over the world cut the rate cut, the market expected the RBI Governor too to announce a rate cut, which he did not. He said the decision in this regard will be taken only after the RBI monetary policy committee meeting which is scheduled to be held on April 3. Rate cuts are done through MPC as per the Act, but I am not ruling out anything, Das said.

He announced that the RBI will conduct another USD 2 billion swap on March 23 and added that the central bank is ready to alleviate the impact of coronavirus on markets with the help of several policy instruments.

The RBI Governor also announced that the central bank will launch another round of long-term repo operations worth ₹1 lakh crore in June.

Speaking on the Yes Bank crisis, the RBI Governor said the resolution framework for Yes Bank is underway as planned and depositors can withdraw their money from the evening of March 18.

The RBI governor, Shaktikanta Das, also assured to intervene with additional liquidity if there is a need.

Defending the steps taken on Yes Bank and expressing confidence in getting the intended outcomes, Das said the identity of the bank will be retained as a private sector lender.

Das also said that despite the crisis at Yes Bank and the rapidly evolving coronavirus pandemic on the economy and the banking system, the health of the banking system is good.

In a tweet, Yes Bank also said customers will be able to access full banking services from Wednesday evening, as the moratorium will be lifted earlier.

"We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services," the tweet said.

"You will also be able to access all our digital services & platforms @RBI @FinMinIndia," it said.expected to be impacted by the outbreak of novel coronavirus.

(With PTI inputs)