Set of measures under consideration to deal with financial stress: NITI Aayog VC
The government is considering a number of measures which will be taken at an appropriate time to deal with financial stress and unleash animal spirit in the economy, Niti Aayog Vice Chairman Rajiv Kumar said on Thursday.
Both the government and the RBI have taken a series of measures to deal with stress in the financial sector triggered by default in the group companies of IL&FS.
In a bid to improve liquidity, Kumar said the central bank has taken various steps in the past few months as a result of which the cash position in the system has stabilised.
He further said public sector banks have provided liquidity to non-banking finance companies (NBFCs).
He said the RBI has reduced repo rate four consecutive times this year and also directed the banks to pass rate cut benefits to borrowers.
Kumar further said that the government has taken a series of measures to improve the financial health of the NBFC sector.
The government permitted public sector banks to purchase high-rated pooled