Restore Stability To Revive Economy

Former Deputy Governor of Reserve Bank of India, Viral Acharya in his latest book - Quest For Restoring Financial Stability in India - has figured out some key issues in India’s financial sector and suggested some measure too, during an interview with Rajat Mishra. Edited Excerpts:  The RBI came up with a loan moratorium during this pandemic. Your views. I think there should be some scope in the system for temporary stopgap measures, especially, if the shock is unprecedented like this pandemic, which no one could have anticipated. The shock in terms of working conditions, the inability of large sectors to generate immediate revenues during lockdown can’t be completely left unaccommodated. The moratorium with a sunset clause is the right approach. The idea is to accommodate the temporary problems, without eliminating the discipline of repaying creditors on time. We need...