RBI Governor said – Cryptocurrency is a big threat, for investors
RBI Governor Shashikant Das has once again warned about cryptocurrencies. Das said that there is a clear danger from cryptocurrencies. Drawing a price based on uncorrected value is mere speculation. Significantly, the government is in the process of finalizing a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions. The Reserve Bank of India (RBI) has been continuously expressing its concern about cryptocurrencies. In the preface to the 25th issue of the Financial Stability Report (FSR), Das also said that as the financial system becomes increasingly digital, cyber risks are on the rise and need special attention.
Indian economy on the path of revival
The Reserve Bank of India (RBI) on Thursday said the Indian economy is on a revival path despite inflationary pressures and the need to consciously deal with geopolitical risks. The 25th Financial Stability Report (FSR) of the Reserve Bank, while presenting an assessment, said that banks as well as non-banking financial institutions have sufficient capital buffer to withstand the ‘shock’. According to the report, despite the challenges posed by global developments, the Indian economy is on the path of revival. However, due to inflationary pressures, external developments and geopolitical risks, the situation requires careful handling and close monitoring.
War and inflation increased the challenge
The report says that the outlook for the global economy remains very uncertain due to the war in Europe, persistently high inflation levels and monetary measures taken by central banks to deal with multiple waves of the COVID-19 pandemic. The RBI report on the banking sector says that the risk-weighted asset ratio (CRAR) of scheduled commercial banks (SCBs) to capital reached a new high of 16.7 per cent while their gross non-performing assets (GNPA) ratio as of March 2022 fell to a six-year low of 5.9 per cent. According to the report, comprehensive stress tests for credit risk suggest that SCBs will be able to adhere to minimum capital requirements even in severe stress scenarios.