Reserve Bank of India (RBI) Governor Shaktikanta Das met the heads of public and private sector banks on Monday and cautioned them to remain watchful of the evolving Covid-19 situation in the country. The governor has asked banks to take proactive measures and shore up capital to strengthen their balance sheets. Das in his remarks said the recent policy measures had been taken to further support the ongoing recovery while preserving financial stability. He touched upon the importance of credit flows in sustaining the nascent economic recovery. In the recently concluded monetary policy meeting, the six-member committee voted unanimously for a status quo on the benchmark rate “for as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward”. Among other things, the governor, along with Deputy Governors MK Jain and M Rajeshwar Rao, discussed the liquidity scenario, monetary transmission, credit flow to the stressed sectors such as MSME and retail, and capital augmentation by banks.