RBI governor said: the risk on the debt will increase due to the entry of tech companies like Google-Amazon into the financial business


Posted on 18th Jun 2022 12:26 pm by rohit kumar

RBI Governor Shaktikanta Das said that the risk will increase with the entry of big technology companies like Google and Amazon into the financial business. Systematic concerns such as over-borrowing and non-payment may arise at the borrower's level. With the entry of big technology companies like Google, Amazon, and Facebook (meta) into the financial business, questions will also arise about competition and privacy of data.

 

Das said at an event on Friday, that there are risks associated with these companies. It is necessary to properly assess and deal with it. These include e-commerce companies, search engines, and social media platforms that have started offering financial services on a large scale, either on their own or in partnership. In such a situation, new methods of estimating debt have started being used. Such large-scale use of new methods can lead to systemic concerns of excessive debt, the inadequate credit assessment, and similar risks.

 

Will make digital lending more secure

 

RBI said that the RBI will soon issue guidelines to make the system of disbursement digitally safe and sound. A discussion paper will also be brought. He also expressed concern about how people are being cheated in the name of distributing loans on digital platforms. However, to make people aware of this regard, the central bank also issues guidelines from time to time.

 

Focusing on the inflation target first would have been disastrous

 

Das said, had the central bank focused on the inflation target of 4 percent, the results would have been disastrous for the economy. Rubbishing allegations of not taking policy steps at the right time, he said the central bank could not have made a big hike in interest rates immediately. To deal with inflation, RBI could not have paid attention even three or four months before April 2022, it would not have been proper. In March, when economic activity seemed to have surpassed pre-pandemic levels, the focus was on inflation. Two days ago, in an article, the RBI was accused of not taking timely steps on inflation. It was co-authored by former Chief Economic Adviser Arvind Subramaniam.

 

...then the effect on the growth rate

 

The increase was noticed in the wake of the pandemic. Despite this, the economy contracted by 6.6% in 2022-21. Had the central bank changed its stance earlier, growth could have been impacted in 2021-22. The forecast in February 2022 that inflation may remain at 4.5% in 2022-23 was not a promising estimate. This calculation was also done on the estimate of crude prices to be $ 80 per barrel, but the Russo-Ukraine war changed the scenario.

 

Payment Vision aims to grow digital payments 3x

 

RBI released the document 'Payment Vision 2025'. It aims to triple the growth in digital payments. The central bank will encourage the use of debit cards and will emphasize reducing the circulation of cash. Vision Document aims to provide secure, fast, convenient, accessible, and affordable e-payment options to every user.

 

The government will continue capital expenditure for growth: CEA

 

Chief Economic Adviser (CEA) V Anantha Nageswaran said on Friday that the government is committed to continuing to support the pace of economic growth after the third wave of the pandemic, through capital expenditure. He said that in 2021-22, when the capital expenditure was Rs 6 lakh crore of the budget estimate, then the government was able to spend only 5.92 lakh crore. Therefore, if the government can incur a capital expenditure of Rs 7.5 lakh crore in the current financial year, it will be the biggest real economic intervention.

 

Also Read: LIC: LIC ranks second among loss-making companies in Asia this year, shares fell 29 percent, market cap decreased by 1.78 lakh crore

1 Like 0 Dislike
Previous news Next news
Other news

Weather Report: Cold increased in the plains including Delhi, and mercury dropped in many cities; Know today's weather update

The weather seems to be changing completely in December and severe colds can become a problem for

Parliament Security Breach: From daily wage laborers to MPhil, know who are the accused of creating a nuisance inside and outside the Parliament

A major incident of security breach came to light on Wednesday, the anniversary of the terrorist

Ministry of Education: Board exam will be held twice, students of 11th/12th are not restricted to choosing stream

Big news for the students of senior classes in schools across the country. The central government

SCO Interior Ministers Meet: India demands strict action against terrorism in SCO meeting

Minister of State for Home Nityanand Rai called for strong action against terrorism and drug traf

Kerala Crime Files Released: Malayalam crime drama series 'The Kerala Files' released, know when and where to watch

Malayalam Suspense Drama Kerala Crime Files Released: Ever since the trailer release of the Malay

SCO-2022: China not happy with Russia's attack on Ukraine! Know what came out of the Putin-Xi meeting

Because of the views expressed by the leaders regarding the war between Russia and Ukraine in the

Covid-19: 25 thousand new cases of corona in China, partial lockdown in Beijing

The situation has become serious since 25,000 new cases of the corona were reported in China. The

Team of IPL owners will play in South Africa: 6 franchises including Mumbai-Chennai captured all the teams, know when the match will be played

Along the lines of IPL, the T20 league is going to start in South Africa in January 2023. The own

Maldives Vs Lakshadweep: FWICE gets angry after celebs, appeals to filmmakers to stop shooting in Maldives

Maldives Vs Lakshadweep: The lakshadweep vs Maldives dispute has been in the headlines for quite

Mohammad Zubair: Know who is Alt News chief Mohammad Zubair? Why was the arrest made? What is the relation in the Nupur Sharma case?

Mohd Zubair, the co-founder of fact-checking website Alt News, has been arrested by the Delhi Pol

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash