"If Not Now, When?": Uday Kotak Calls For Printing Money To Save Economy

Coronavirus: "The government last year announced a very successful lending scheme by banks for the stressed sectors. I'd recommend that the scheme be expanded," Uday Kotak told NDTV

India needs to print cash to support the economy that has been damaged by the protracted COVID-19 crisis, one of the country's top bankers Uday Kotak has told NDTV. This expansion, said the chief executive of Kotak Mahindra Bank, needs to be done in two parts - one for those at the bottom of the resources pyramid, and the other for protection of jobs for sectors affected by the pandemic. "In my view, this is the time to expand the balance sheet of the government, duly supported by the RBI (Reserve Bank of India)... for monetary expansion or printing of money. Time has come for us to be doing some of that... If not now, when?" Mr Kotak said. For direct cash transfers to the poor, Mr Kotak recommended a government expenditure of up to 1 per cent of the gross domestic product, or between Rs 1 lakh crore and Rs 2 lakh crore. This will also in effect strengthen consumption at the bottom of the pyramid, the banker said. "Medical benefits to the poorest of the poor need to be given," Mr Kotak said.