RBI Guv says optimistic about 9.5% GDP growth, raised concerns on cryptocurrencies

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RBI Governor Shaktikanta Das has said that the central bank is optimistic about the growth estimates of 9.5% GDP, as economic indicators are showing an uptick. It is expected that the economic growth will improve from second quarter onwards and the ill effects of Covid-19 on the economy are declining.

At an event organised by two media publications, the RBI governor said that the central bank has decided to focus on growth and work in the inflation ban set between 2-6% by the government. RBI will aim to move steadily to achieve a target of 4% with time. He added that the chances of an increase in inflation are also less. The domestic markets are rising due to the smooth liquidity conditions. Das said that there is no evidence if the high asset prices are affecting the inflation situation. The panel on setting the rate will take a call on whether an accommodative stance will be taken or not.

As of the end of the June quarter, the gross non-performing assets ratio of the banking system was 7.5%. Das said the lenders have enough capital buffers and the ratio is “manageable” as of now.

On cryptocurrencies, Das said that serious and major concerns about cryptocurrencies have been conveyed to the government. He said, “We need credible answers on the operation of private cryptocurrencies and their role in the Indian economy.”