Expressing concern over the prices of petrol and diesel, the RBI governor has given some suggestions to the government. He believes that this will also improve the Indian economy.
RBI Governor’s suggestion to reduce the price of petrol and diesel
The public is fed up with the continuous increase in the prices of petrol and diesel. The trouble has increased due to the increase in the prices of CNAG and PNG on Thursday. In such a situation, Reserve Bank of India Governor Shaktikanta Das has advised the government to reduce the price of fuel. He says that reducing the tax on fuel can bring down the prices.
According to the RBI governor, the central bank wants to control inflation. Its focus is to bring the economy back on the track of development. Therefore, it is very important to rein in the increase in the prices of petrol and diesel.
Shaktikanta Das said, “We are aware and sensitive that a change in the monetary policy stance can have a negative impact on the economic recovery. But we also want to control inflation. So we want to keep it close to the target set for the medium term.”
The governor said that the RBI wants to keep the inflation estimate close to the level of 4 percent before Corona. But the prices of crude oil are increasing in the global market. Due to this the pressure on inflation is increasing in the country. Also, there is a lot of tax on petrol and diesel. In such a situation, there is additional pressure on the economy. He also said that the policy of America’s central bank Federal Reserve will have an impact on all economies including India.
According to the RBI governor, the country’s foreign exchange reserves increase confidence, but now India’s foreign exchange reserves are $ 609 billion. This is enough for 15 months of import. Along with this, the total external debt on the country can be paid. But better policies need to be adopted for the future.
During this, he also appreciated the steps taken by the government in the first phase of the corona epidemic. He said that last month the government announced a guarantee on bank loans for small businesses as well. This will reduce uncertainty for investors and will boost growth. Apart from this, steps have also been taken to promote health and tourism sector, which is expected to benefit.
Also read: RBI imposed a fine of crores on 14 banks, from government to private banks included