RBI Governor Shaktikanta Das says incoming data on GDP growth mixed but positives outweigh negatives

Reserve Bank Governor Shaktikanta Das connected Wednesday said the incoming information connected economical maturation is "mixed", but the affirmative factors outweigh the antagonistic ones.

Speaking astatine Business Standard's yearly BFSI lawsuit here, Das stressed that the underlying economical enactment by and ample remains strong.

"Data which is coming successful is mixed but the positives outweigh the negatives and by and ample underlying activities stay strong," Das said.

It tin beryllium noted that galore analysts person been voicing concerns astir growth, particularly aft authoritative information showed maturation slowing to a 15-quarter debased of 6.7 per cent successful the archetypal 4th of FY25.

The RBI, however, has been holding onto its estimation of 7.2 per cent existent GDP maturation for FY25, adjacent arsenic immoderate expect it to beryllium little than 7 per cent.

Das said the RBI tracks implicit 70 high-speed indicators to get astatine its estimates and described some the affirmative factors pushing the fig and the negatives pulling it down.

The concern accumulation oregon IIP data, and moderation successful municipality request being witnessed by fast-moving user goods companies are the antagonistic factors. Besides, subsidy outgoes person accrued successful the September 4th and volition interaction the Q2 GDP number, Das said.

The positives see the handsome maturation successful GST e-way bills, toll collections, aerial rider traffic, and alloy and cement manufacture performance, Das said.

Amid the accrued treatment connected the car assemblage prospects precocious with concerns astir rising inventory amid little demand, Das said the assemblage has done exceedingly good successful October with a 30 per cent maturation which includes a 23 per cent emergence successful four-wheeler sales.

Additionally, the agriculture and services sectors are besides doing well, Das said.

"I would not unreserved to state that the system is slowing down," the RBI politician said amid immoderate analysts saying that the system is successful a cyclical maturation slowdown.

When reminded of his carnal analogies connected ostentation and asked to take the carnal which describes the Indian economy, Das said nationalist carnal "tiger" which is besides determination successful the RBI logo champion describes the country.

He said the system has got the spot of a tiger, portion RBI provides the "agility", which is different cardinal property of the tiger.

On inflation, Das said the October header user terms ostentation fig to beryllium announced connected November 12 volition beryllium higher than September's 5.5 per cent, but added that the cardinal slope had already pencilled successful the higher numbers for the 2 months.

The displacement successful stance of the monetary argumentation should not beryllium seen arsenic a precursor to a complaint chopped astatine the precise adjacent gathering of the rate-setting panel, Das said adding that the sheet is nether nary unit connected the adjacent people of action.

On the contented of regulatory and supervisory actions against 4 non-banks recently, Das reiterated that the RBI has acted against a precise tiny fig if 1 were to comparison the wide fig of NBFCs (non-banking fiscal companies), which is 9,400.

Asserting that the cardinal slope actions are "calibrated, selective and measured", Das said specified decisions are not abrupt and are preceded by months of bilateral engagement with an entity.

It is lone erstwhile an entity refuses oregon delays RBI's suggestions that specified actions are taken, Das said, adding that the fig of entities marked retired for the request to amended is acold higher than the ones against whom actions are taken.

Detailed reasons connected wherefore an enactment has been taken are fixed to the entity, Das said, underlining that these actions are not "punitive" but "corrective" successful quality wherein the RBI takes backmost the measures if it sees improvements sought.

The RBI has done a speedy survey to recognize the usage of borrowed funds being deployed to punt connected the superior markets, Das said and added that this improvement does not airs a large hazard to the banking assemblage oregon pb to "systemic instability".

He urged banks to look astatine the extremity usage of funds adjacent successful unsecured loans, admitting that it is precise hard to show the same.

The RBI does not person a prescribed recognition deposit ratio for the banks, Das said, adding that this ratio has improved to 80 per cent astatine the systemic level successful the past fewer months.

However, determination are a fewer entities which are the outliers connected this, helium admitted.

Quality of indebtedness underwriting and the quality to prolong the indebtedness maturation are 2 important aspects that the cardinal slope looks astatine portion knowing indebtedness growth, Das specified. He besides made wide that the cardinal slope does not person a presumption connected recognition growth.

The RBI endeavours to "smell around" constantly, and beryllium preemptive successful identifying and rectifying risks earlier they go into systemic trouble, helium said.

Replying to a question connected the aboriginal of cardinal slope integer currency (CBDC), Das said the RBI is successful nary hurry to person a nationalist motorboat of what is simply a aviator task astatine contiguous and added that caller usage cases are emerging similar Odisha's transportation of currency enactment to beneficiaries nether a strategy oregon immoderate corporates transferring luncheon vouchers to worker wallets.