With the experience of higher level of stress in PSBs, it is important that lending institutions using public deposits are not exposed to undue and unmanageable levels of risk from external factors and in the process jeopardizing financial stability. (v) RBI has been engaging with all the stakeholders for creating a suitable environment to resolve the problem of NPAs in infrastructure sector.
A variety of forces have likely contributed to a decline in the neutral rate, including demographic trends in many large economies, some slowing in the rate of productivity growth, and increases in the demand for safe assets.