33 C
Mumbai
Sunday, April 18, 2021
Home Business ‘Bad bank’ move will not hit existing ARCs: RBI’s Das

‘Bad bank’ move will not hit existing ARCs: RBI’s Das

The ‘bad bank’ proposed within the Union Budget will not jeopardise the exercise of existing asset reconstruction firms (ARCs) , stated Reserve Bank of India Governor Shaktikanta Das on Thursday. He added that the central financial institution was within the means of upgrading their regulatory construction.

Advocating a sturdy push for Indian exports by free commerce pacts with ‘strategically important economies,’ Mr. Das warned that the restoration in world commerce was uneven and sought pressing consideration from world policymakers to rein in disruptions in world provide chains brought on by a steep surge in delivery prices and supply occasions.

“Refining and upgrading the ARCs’ regulatory architecture is something that is getting our attention to ensure that they have skin in the game and are very much in business,” Mr. Das stated at an interplay with the Bombay Chamber of Commerce and Industry.

The Budget proposal for establishing a brand new ARC, he stated, had been mooted by public sector banks, including that there was scope for a powerful ARC shaped by the banks themselves.

“It’s not really a bad bank (but) an ARC-type entity that will be set up to take over the stressed assets from the books of public sector banks and try to resolve them like any other ARC. So that is targeting a specific set of bad assets which certain groups of PSBs hold. In no way will it jeopardise the activity of existing ARCs,” the governor stated.

Export worries

“Even though merchandise trade has shown incipient signs of revival since end-2020, recovery in services trade is yet to gain traction as subdued cross-border tourism and travel restrictions continue to weigh on the overall performance of the sector.

“Uneven global trade recovery led by a few Asian countries and select sectors such as medical equipment and electronic products raises concerns regarding its sustainability,” he stated.

An important obstacle to revival of worldwide buying and selling exercise was the continued disruptions in world provide chains, accompanied by a steep rise in delivery prices since November 2020 and longer supply occasions resulting in rising commodity costs, he added.

On free commerce pacts, he stated, “Another policy area which needs focus for providing a durable push to India’s exports and growth is Free Trade Agreements (FTAs) with key strategically important economies. Key considerations should be to identify countries and regions that not only have the potential as a market for domestic goods and services but also have the scope to enhance domestic competitiveness.”

You have reached your restrict totally free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly model of articles from the day’s newspaper in a single easy-to-read record.

Unlimited Access

Enjoy studying as many articles as you want with none limitations.

Personalised suggestions

A choose record of articles that match your pursuits and tastes.

Faster pages

Move easily between articles as our pages load immediately.

Dashboard

A one-stop-shop for seeing the most recent updates, and managing your preferences.

Briefing

We transient you on the most recent and most vital developments, 3 times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not at present embody the e-paper, crossword and print.

Source link

Most Popular

EnglishGujaratiHindiMarathiUrdu