RBI steps will strengthen economy, banking sector

Hyderabad: Pointing out that Indian economy is facing an unprecedented crisis, K Narasimha Murthy, financial and banking expert, felt that a slew of measures announced by the Reserve Bank of India (RBI) on Friday would go a long way in strengthening the country's banking system and reviving the economy.

"A robust banking system is essential for the country to have a stable economy. Several regulatory measures announced by RBI on Friday will strengthen the banking sector at a time when the country is facing crisis. The steps will improve credit flow," Murthy told The Hans India. He further said that RBI also came out with several measures to improve liquidity in the system, which would eventually support the economy and strengthen it.

According to him, RBI's decision to infuse Rs 50,000 crore into SIDBI, National Housing Board and Nabard would help many sectors. A part of these special refinance funds which will go into SIDBI will support key MSME sector, he added.

Murthy pointed out that RBI also announced steps to help State governments whose revenues are hit by lockdown. "Going forward, RBI may come out with more measures if required. It's dynamic situation now," he said.

When asked about complaints that banks are not passing on the benefits like three-month moratorium on loans announced by RBI recently, he said such people should approach banking ombudsmen and lodge a complaint. "Some people also brought such issues to my notice. The affected persons should approach the right forum for redressal of their grievances," he said.