Governor Shaktikanta Das has ruled out any immediate moratorium on loans despite the recent surge in Covid 19 cases and partial lockdowns announced in various states across the country.
Das also said that the Reserve Bank of India (RBI) is watching the asset quality situation at banks, and will take any action when required.
I cant speculate on the actions the RBI will take in the future, but I am quite sure that the government, regulator and private businesses are better prepared in dealing with the lockdown situation, Das said, while interacting with the media after the monetary policy announcement on Wednesday.
Moratorium is a very standard tool; we have taken several unconventional steps in the last year. We are deliberately on a lot of conventional and unconventional steps; we will take a call at the right time. Moratorium is not required in todays situation, he said.
Das added that the RBI was closely watching the situation and would take steps, if necessary, to maintain financial stability.