Mumbai, Aug 6 (PTI) Amid uncertainties over global trade front, Reserve Bank Governor Sanjay Malhotra on Wednesday said the central bank is taking all necessary steps to support economic growth.
“We will continue to do whatever is required to be done in such a scenario. Of course, trade negotiations are still continuing. We are hopeful that we will have an amicable solution,” he said during a post-monetary policy media interaction here.
The RBI has taken a number of measures to support growth not only on monetary policy or liquidity side but on prudential regulation side as well steps have been taken, he said.
On the Foreign Exchange Management Act side, he said, “We have a draft now which will be put up so as to ease doing businesses and ease international trade.” India has recently concluded a comprehensive trade pact with the UK, the UAE, and Australia.
Negotiations for similar pacts are going on with a number of countries, including the US, the European Union, Oman, and New Zealand.
Malhotra also India has comfortable foreign exchange reserves, which can take care of 11 months of import.
He said the RBI continues to monitor macroeconomic conditions on a policy-to-policy basis and take appropriate measures accordingly.
“We will not be found wanting in whatever is required to provide the right balance of price stability and economic growth for the development of our country,” he said.
On the issue of impact of rate cut on real economy, he said, it comes with a lag.
With regard to bad loan situation, he said the NPA situation in the banking system is satisfactory with gross NPA at 2.2 per cent while net NPA is at 0.5-0.6 per cent. PTI AA DP CS TRB
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