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Easy liquidity policies helped banks to work with strong parameters even in financial stress: RBI

The extraordinary easy liquidity policies of the Reserve Bank of India (RBI) have helped banks report strong financial parameters but these numbers do not necessarily reflect the true stress in the system due to the pandemic, Reserve Bank of India governor Shaktikanta Das said. For the second time in a row, the governor warned of the divergence between the financial markets and the real economy and raised red flags about ballooning stock and bond values. “But the financial stability will be the overarching goal of the regulator”, said Shaktikanta Das.

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