Monitoring Coronavirus Impact on Market, Ready to Take Action: RBI

RBI said it is ready to take necessary action to ensure orderly functioning of financial markets.

The Reserve Bank of India. Image used for representational purpose.

(Photo: Reuters)

The Reserve Bank on Tuesday, 3 March, said it is closely monitoring global as well as domestic situation regarding the impact of deadly coronavirus and ready to take necessary action to ensure orderly functioning of financial markets.

Globally, financial markets have been experiencing considerable volatility, with the spread of coronavirus, triggering risk-off sentiments and flights to safe haven, the Reserve Bank of India (RBI) said in a statement.

Spillovers to financial markets in India have largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today.

“The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability.” 

Reserve Bank of India

The outbreak of coronavirus and subsequent spread to geographies across the world has adversely affected the financial markets.

Meanwhile, the government has issued a travel advisory, suspending all regular visas/e-visas granted on or before 3 March to nationals of Italy, Iran, South Korea, Japan who have not yet entered India, a day after two fresh cases of coronavirus was reported in the country.