Financial sector policies should support growth while maintaining financial stability, RBI governor Urjit Patel said in a statement released on the central bank’s website on Wednesday. Financial sector policies should support growth while maintaining financial stability, Patel said in a statement released on the RBI’s website on Wednesday. On Tuesday evening, the government announced Rs2.11 trillion for PSU banks’ recapitalisation to revive investments as well as growth. Out of the total commitment, Rs1.35 trillion will come from the sale of so-called recapitalisation bonds. According to Patel, through recapitalisation bonds, capital injection in state-owned banks will be front-loaded, staggering the resultant fiscal impact over a period of time.

Source: Mint October 25, 2017 07:41 UTC