Reserve Bank of India (RBI) governor Urjit Patel said that the implementation of the goods and services tax nationwide will provide flexibility to the economy. He further said that the demonetization of higher currency notes will embrace a significant change in long-term. The quotes were mentioned in the Financial Stability Report published by RBI.
Talking about the demonetization, Patel also said that the resolution will significantly transform the economy in terms of greater efficiency gains, transparency, accountability and inter-mediation with the increase in the digital transactions across the nation.
Looking to the concerns of the stressed banking sector, Patel said, “While the domestic banking sector continues to face significant levels of stress partly reflecting legacy issues, on balance, enhanced transparency has helped to reinforce the stability of India’s financial system.”
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The government is ensuring these changes must not disturb the financial stability of the country. The global financial crisis has provoked regulators to take banks through stress tests. These steps will ensure the quality of the Indian banks.
