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22-Oct2018

Declining value of rupee, high NPAs continue to remain cause for concern: Bimal Jalan

Expressing cautiousness over recent depreciation of Indian currency and non-performing assets (NPAs) issue, former Reserve Bank of India (RBI) Governor Bimal Jalan has said that declining value of rupee and high NPAs continue to remain a cause for concern. Though, he also said government has launched several reforms, including the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and direct benefit transfer scheme, are good for the economy; and there is no doubt that the growth rates are one of the highest in emerging markets; inflation is low.

On the non-economic front, Jalan said the country is still suffering from mis-governance, civil protests in several states over different issues and non-secular announcements. He further said the government should adopt a cautious approach with regard to minimum support price as it also affects the price of food grains for consumption for poor people in rural and semi urban areas.

Regarding sustained fall in the value of rupee, former RBI Governor said 'I would not say it (depreciation of rupee) is cause for worry per se, in the sense that we have enough resources but the movement in rupee's value in the last couple of months has been a matter of concern.' However, he highlighted that the government has taken some measures to contain the fall of the rupee. Pointing out that NPAs is a problem, he expressed hope that bad loans issue is going to be resolved as the government has introduced IBC and also the RBI has announced some prompt corrective actions (PCA).


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