India will provide impetus to the global economy: RBI governor

New Delhi – Reserve Bank of India (RBI) governor Shaktikanta Das said that India’s banking industry has tremendous potential. If all the factors are aligned cohesively, the economy will progress rapidly. Moreover, it would provide an impetus to the global economy.’

On Sunday, RBI Governor was addressing a function to launch a program, ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’. Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and many dignitaries from the banking sector were present at the occasion. For the first time since 1993, the limit of insurance cover on deposits increased. This limit was increased from one lakh to five lakh. Under this scheme, checks were distributed to the banks’ account holders, which went bankrupt last year.

Speaking on occasion, RBI Governor Shaktikanta Das underlined the importance of the country’s banking sector in the economy. He said that RBI is paying close attention to making the banking system more flexible, and the credit policy is designed accordingly. The banking sector contributes significantly to the development of various sectors. Therefore, the performance of the banking sector is vital for the economy, said the RBI Governor Shaktikanta Das.

Therefore, if all the factors linked with the banking sector are unified and cohesive, the banking sector will prosper to boost the country’s economy. Shaktikanta Das expressed confidence that if the banking sector works as a cohesive force, India could become a driving force for the global economy.

Experts claim that the world is looking at India with hope as the global economy slows down due to the Coronavirus pandemic. Against this backdrop, the statement from Shaktikant Das is significant. Meanwhile, the RBI governor has warned depositors against the temptation of higher interest rates. ‘Consumers should consider the risk associated with higher interest rate deposits,’ said Shaktikant Das. Das advised that depositors and account holders should ascertain that the temptation of high-interest rates is not deceiving them.