The central board of the Reserve Bank of India (RBI) on Friday discussed the current economic situation and the evolving challenges from the Covid-19 pandemic.

The 583rd meeting came amid a severe hit to the country’s economic growth with banks reluctant to lend amid fears of a spike in bad loans during the second half of this fiscal. Ahead of the meet, there was speculation that the board may discuss changes to the current one-time loan restructuring scheme and also the norms on non-performing assets. Sources, however, said the issue did not figure at the meet.

A statement from the RBI said governor Shaktikanta Das briefed the board members about the impact of the various monetary and regulatory measures taken by the central bank to deal with the Covid-19 crisis.

“At the outset, the governor and deputy governors briefed the board about the overall macroeconomic conditions — both domestic and global; the financial sector situation; and the impact of various monetary, regulatory and other measures taken by the RBI in the context of the Covid-19 pandemic,” the RBI said.

Finance Commission view

The government need not at present focus on fiscal consolidation and increased public debt, rather should concentrate on the fastest possible revival of the economy, the 15th Finance Commission chairman, N K Singh, said on Friday.

He said there is acute pressure on the finances of both the Centre and states given the much lower growth number and revenue receipts. Speaking to reporters after the meeting of the commission with the economic advisory council, Singh said “this year we must not concentrate on the fiscal or debt. We must concentrate on fastest possible revival of the economy”.