These are definitely bold and welcome measures. It will augur extremely well and will be highly positive for our economy, Das said at an India Today organised an event.
In a major fiscal booster, the government slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.
Shaktikanta Das' comment on NBFCs comes at a time when banks are grappling with the resolution of stressed cases like mortgage financier DHFL.
Shaktikanta Das refused to share RBI's revised growth projection, stating that it will go public with the revised numbers at the next monetary policy announcement on October 4.
Expressing concern over the first quarter GDP, RBI Governor said that the numbers looked much worse because RBI had projected 5.8 per cent.
The revised framework allows RBI’s economic capital levels to be between 20 and 24.5 per cent of the balance sheet.
'Estimates of economic growth in India have unfortunately been subject to a fair degree of floccinaucinihilipilification,' said MPC member Chetan Ghate.
RBI Governor Shaktikanta Das has given enough hints that linking of interest rates to an external benchmark is likely to happen.
RBI Governor Shaktikanta Das also pointed out that external benchmarks would lead to cheaper loans and more transparency in rates.
This had FPIs dumping domestic equities and debt like dung since the budget, pulling down the benchmarks by over 13 per cent July 5.
The IL&FS group owes close to Rs 1 trillion to the system and more than half of that is to banks, mostly state-owned ones.
The move comes even as the regulator has decided not to push banks for this, considering their poor finances.
The Congress leader on Monday had visited flood-affected areas in his Wayanad Lok Sabha constituency in Kerala, including worst-hit Puthumala, and assured all help.
Analysts feel that the repo rate cut might indicate that the slowdown may be getting worse, but it’s too early to hit the panic button.
Prior to the latest cut of 35 basis points (bps) in repo rate the MPC had already reduced it by 75 bps since February 2019.