India's top banker Uday Kotak has said that India needs to expand its balance sheet and print money to support the economy ravaged by the ongoing Covid-19 crisis.
In an interview with NDTV, Kotak said the move must look into two sections — one focusing on those who are struggling for resources in the pandemic and the second on securing jobs in sectors most impacted by Covid-19.
"In my view, this is the time to expand the balance sheet of the government, duly supported by the Reserve Bank of India (RBI) for monetary expansion or printing of money. The time has come for us to be doing some of that. If not now, when?" the chief executive of Kotak Mahindra Bank said.
He suggested that for direct cash transfers to the poor, the government should spend up to 1 per cent of the GDP, roughly between Rs 1 lakh crore to Rs 2 lakh crore. Kotak said this will strengthen consumption among those at the bottom of the resources pyramid. He also called for medical benefits to the poor.
He lauded the Centre's lending scheme by banks for the stressed sectors and recommended expanding the scheme from the current Rs 3 lakh crore to Rs 5 lakh core and including more sectors in the ambit.