Outbreak to slow down economy: RBI

Mumbai, March 16

Coronavirus (Covid-19) pandemic would result in a slowdown in the Indian economy, Reserve Bank of India’s Governor Shaktikanta Das told reporters here today.

Addressing the media here, Das said the Covid-19 outbreak would impact India directly through trade channels where exposure to China was relatively high.

“The second round of effects of the pandemic could operate through a slowdown in the domestic economic growth... result of synchronised slowdown in global growth and as part of that the growth momentum in India would also be impacted somewhat,” Das said. He pointed out that sectors such as tourism, airlines, hospitality industry, transporters and domestic trade were suffering losses. Overseas and domestic equity markets, forex and bond markets were also not immune, he said.

The RBI chief added that the central bank was still evaluating the impact of the pandemic on the Indian economy and measures like interest rate cut would be considered during the meeting of the monetary policy committee.

He, however, pointed out that India was relatively insulated from the global value chain, but still it was integrated somewhat with the global economy and hence would suffer some impact from the pandemic.

Separately, the Reserve Bank of India in a circular asked all banks and financial institutions to assess the impact on their balance sheet, asset quality, liquidity, among others, in the wake of the potential threat arising out of the spread of Covid-19 in India.

The RBI chief pointed out that the central bank would support the crisis-hit Yes Bank with liquidity, if needed. “I would like to convey to the depositors of Yes Bank... that their money is completely safe and there is nothing to worry about. There is no reason for any undue worry,” Das said. He added that moratorium on Yes Bank would be lifted on Wednesday evening. — TNS

Yes Bank to resume ops from tomorrow

New Delhi: Yes Bank customers will be able to access full banking services from Wednesday evening, as the moratorium will be lifted earlier. The RBI had on March 5 put a moratorium on Yes Bank, restricting withdrawal to Rs 50,000 per depositor till April 3.

“We will resume full banking services from Wednesday, March 18, 2020, 18:00 hours. Visit any of our 1,132 branches from March 19, 2020, post commencement of banking hours to experience our suite of services,” Yes Bank said in a tweet. — PTI

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