Covid may lead to higher NPAs, capital erosion, warns RBI Governor
Shaktikanta Das, RBI Governor said the Indian economy has begun showing improved signs of getting back to normalcy. It is only possible because of taking several regulatory initiatives.
In a press meet, Shaktikanta Das said in a crisis like corona, there is a big challenge for the stability of the finance. He has alerted that COVID-19 may put pressure on non-banking financial companies (NBFCs) and mutual funds and added that corona pandemic may lead to higher non-performing assets and capital erosion of banks.
RBI Governor said it is the first time in the history of 100 years that there was a economic crisis all across the world.