New Delhi: Addressing the crisis in Yes Bank, RBI Governor Shaktikanta Das on Monday addressed a press conference, said that the depositors need not worry about their money as it is safe in the bank.Also Read - Yes Bank to Resume Full Banking Services From March 18 - Details Inside
He also said that a swift action has been taken by the RBI and the Central government. “The lifting of moratorium will be done on March 18 at 6 PM. Also Read - Yes Bank Moratorium to End in 3 Working Days | 10 Things to Know
Talking further about the plan, the RBI Governor said that the new board will assume its position and the office of the administrator will cease to exist on March 26. Also Read - Yes Bank Crisis: Cabinet Approves Bailout Plan, SBI to Invest up to 49% Equity
Das said that the health of banks, including small private sector lenders, is good and Yes Bank is under a robust revival plan.
There are speculations that Das may announce a rate cut. However, the governor said that the RBI will launch another round of long-term repo operations worth Rs 1 lakh crore in June.
The presser from the RBI comes amid a widespread call for a rate cut following similar steps by the world’s leading central banks.
Earlier, the US Federal Reserve has also cut the policy rates to near zero levels in a span of 10 days. Similarly, the Bank of England has also decreased the rates by 50 basis points, and so did the European Central Bank.
Prior to this, the RBI had between February and October 2019 cut the policy rates by a cumulative 135 bps to a nine-year low of 5.15 per cent.
From the time the coronavirus outbreak began in China in mid-November last year, over 6,000 people have been killed, most of them in China. Meanwhile, the number of confirmed coronavirus cases in India has gone up to 114 with two reported deaths.
Holding the press conference, Das said that India is not immune to this pandemic as already more than 100 cases have been reported. “Effort are being mounted by the Central government on war-footing. COVID19 could impact India directly through trade channels, in which exposure to China is relatively high,” he said.
He also added that sectors such as tourism, airlines, hospitality industry and domestic trade and transporters are suffering a loss of activity due to the outbreak of coronavirus. “Spillovers are being transported through finance and confidence channels to overseas and domestic equity markets. Forex and Bond markets are also not immune,” he added.
The RBI Governor further added that the second round of effects of the pandemic could operate through a slowdown in the domestic economic growth and it would obviously be a result of synchronised slowdown in global growth and as a part of that, the growth momentum in India would also be impacted somewhat.