RBI on Coronavirus – Burning Issues

The RBI governor said that Even as the Indian economy was relatively insulated from the global value chain,
Covid-19 could impact India directly through trade channels, in which exposure to China is relatively high.
Sectors such as-
Tourism, airlines, hospitality industry and domestic trade and transporters are suffering a loss of activity.
Spillovers are being transported through finance and confidence channels to overseas and domestic equity markets.
Forex and Bond markets are also not immune

Finance institutions have been asked to encourage their customers to use digital banking facilities as far as possible.
Banks have been asked to devise strategy and monitoring mechanism concerning the spread of the disease within the
RBI asked banks to take stock of critical processes for preventing any disruption of services, due to absenteeism.
Entities should also assess the impact on their balance sheet, asset quality, liquidity, etc.
As the situation requires to be monitored closely, both from business and social perspective,
A quick response Team may be constituted for the purpose,
It shall provide regular updates to the top management on significant developments and act as a single point of contact with regulators