Mumbai: The Indian economy has started showing signs of normalcy with ease in lockdown restrictions across the country, RBI Governor Shaktikanta Das said on Saturday.
He added that post containment of COVID-19, a very careful trajectory has to be followed in orderly unwinding of countercyclical regulatory measures.
The financial sector should return to normal functioning without relying on regulatory relaxation as the new norm, he added.
"Indian economy has started showing signs of going back to normalcy after easing of restrictions," Governor Das said at the 7th SBI Banking and Economics Conclave.
While the multi-pronged approach of the Reserve Bank has provided a cushion from the immediate impact of the pandemic on banks, the medium-term outlook is uncertain and depends on the COVID-19 curve, he said.
"Policy action in medium-term would require a careful assessment of how the crisis unfolds," he said, adding that building buffers and raising capital will be crucial not only to ensure credit flows but also to build resilience in the financial system.
The country's banking and financial system is capable of rising to the occasion in meeting this challenge, he asserted.
In these challenging times, banks have to improve their governance and sharpen their risk management, he said.
Banks will also have to raise capital in an anticipatory basis instead of waiting for a situation to arise, Das noted.
The economic impact of the pandemic due to the lockdown and anticipated post-lockdown compression in economic growth may result in higher non-performing assets and capital erosion of the banks, Das cautioned.
A recapitalisation plan for public and private sector banks has therefore become absolutely necessary, he said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Six foreign nationals held for alleged prostitution in Bengaluru
Bengaluru (PTI): Six foreign women were arrested after they were found to be allegedly engaged in illegal activities by soliciting men in a public place for prostitution, police said on Tuesday.
The arrests were made by the Women Protection Wing of the Central Crime Branch (CCB) on April 24, they said.
Police, however, have not disclosed the nationalities of the women in the statement.
According to police, the operation was carried out following a tip off that some foreign women were standing near the footpath of the bus stop close to Madiwala Check Post, within the jurisdiction of Koramangala Police Station here and were soliciting men passing by on the road for prostitution.
Based on this information, the officers and staff of the CCB Women Protection Wing immediately visited the spot and conducted a verification, they said.
During the operation, it was found that six foreign women were engaging in illegal activities by soliciting men in a public place for prostitution, a statement issued by the office of the police commissioner stated.
Acting swiftly, the officers and staff conducted a raid and secured all six foreign women. Upon inquiry regarding their passports and visas, they failed to provide valid and satisfactory information, it said.
"Subsequently, all six foreign women were produced before the Koramangala Police Station along with a report for further legal action. In this regard, a case has been registered at Koramangala Police Station, and further investigation is in progress," the police statement added.
