Contribution of private cryptocurrencies to economy needs ‘credible answers’: Shaktikanta Das

“We need more credible answers as to what private cryptocurrencies will contribute to India’s economy going forward. We need to be convinced of the explanation and answers. Now the government has to decide,” Das said.

Speaking on the economy, Das said that the RBI is quite optimistic about its 9.5% GDP growth estimate for the financial year 2020-21. He said the fast-moving indicators are showing an uptrend and the economic growth will be better on a sequential basis from the second quarter.

Das also said that the RBI has decided to put more emphasis on growth and work within the inflation range of 2 to 6% due to the pandemic. He said the central bank will gradually move towards the 4% target and made it clear that there is no evidence of inflation normalizing further.

“Working within the band was the specific need of the Covid times. We are alert to the development impulses that are taking root. Going forward, as an inflation targeting institution, our endeavor will be to gradually move towards 4. Time has to be decided,” Das said.

The gross non-performing asset ratio of the banking system stood at 7.5 per cent at the end of the June quarter. Governor Das said bad loans in the banking system are “manageable” as of now, underlining that lenders also have adequate capital buffers.

To a question on the high cut by banks in debt resolution, he said there is scope for improvement in the working of the insolvency and bankruptcy process which may also include legislative changes and the time taken by the courts to admit cases.

“There is scope for improvement in the functioning of the IBC. Perhaps legislative amendments are needed. There is a need to reduce the time taken to admit a case by simplifying the procedures,” Das said.