Economy on recovery path; inflationary pressure, geopolitical risks warrant careful handling of situation: RBI
The RBI's 25th Financial Stability Report said banks, as well as non-banking financial institutions, have sufficient capital buffers to withstand shocks.
The government has credited better compliance and economic recovery for the significant jump in tax-GDP ratio to 11.7 percent in 2021-22.
The task force calls on countries to ensure a steady flow of food and fertilizer through open markets, lift export restrictions, and direct surpluses and reserves to those in need.
On rising inflation, the Niti Aayog Vice Chairman said that RBI is keeping a close watch as per its mandate.
The reduction in corporate tax has "helped the economy, government and companies, and we are seeing the progress", she said.
The report expects earnings and profitability of banks to recover next fiscal on the back of falling loan impairment charges that improved to 1.2 per cent in H1 of FY22, from 1.7 per cent a year ago.