Is inflation over in India? This is what RBI Governor Shaktikanta Das is claiming

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Mumbai : Is inflation over in India? Reserve Bank of India (RBI) Governor Shaktikanta Das has claimed on Friday that the bad phase of inflation is behind. He said that our financial sector is stable and very strong. Along with this, he said that there is no problem with the strengthening of the dollar. Our external debt is manageable. RBI Governor Shaktikanta Das called for coordinated efforts by the G20 to help countries with high external debt exposure due to rising dollar.

RBI Governor Shaktikanta Das further said that the G20 countries should provide financing on a war footing to the countries most affected by climate change. He said that the ongoing crisis in the banking sector in the US clearly shows how private cryptocurrencies pose a risk to the financial system. He said that excessive deposit or loan growth is not a good thing for the banking system.

Amidst the crisis in American banks, Reserve Bank of India Governor Shaktikanta Das said on Friday that the Indian banking system remains stable and resilient. Governor Shaktikanta Das said in the 17th KP Hormis Memorial Lecture that the crisis of US banks shows the need for prudent asset liability management. Referring to the collapse of Silicon Valley Bank (SVB), Das said banks should do proper risk assessment before investing in bonds.

He said that India’s total foreign debt is within manageable levels. Das said the RBI has been continuously engaging with the banks and exhorted them to adopt robust risk management practices, conduct periodic stress tests and create adequate capital buffers. Bank stocks around the world declined amid fears of a wider banking crisis in the United States and Europe.

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