RBI calls for wide-ranging reforms to offset COVID-19 losses

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Mumbai (Maharashtra), Aug 25 (ANI): Declining capacity utilisation, weakening of consumption demand and overhang of stressed balance sheets are restraining new investments, the Reserve Bank of India (RBI) said on Tuesday while calling for wide-ranging reforms to regain losses due to COVID-19 crisis and return to the path of sustainable economic growth.

The corporate tax cut of September 2019 has been utilised in debt servicing, a build-up of cash balances and other current assets rather than restarting the capital expenditure cycle, it said. “These underlying developments suggest that the appetite for investment is anaemic and in need of more reforms,” said the central bank in its 2019-20 annual report.

The RBI said that COVID-19 crisis can be converted into an opportunity by using an online provision of education and training to implement reforms in the social infrastructure by skill development and reskilling so as to prepare a labour force equipped to keep pace with a big thrust on infrastructure.

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