Centre, state should take coordinated steps to lower fuel prices: RBI

A day ahead of Bharat Bandh called by Confederation of
All India Traders (CAIT) to protest against the surging fuel prices in the
country, Reserve Bank of India (RBI) governor Shantikanta Das on
Thursday said that the Centre and state
governments has to work in coordination to reduce the indirect taxes on petrol and diesel, ANI reported.

Also Read: Inflation: Food prices down but cooking gas, petrol, onions on fire

“There is need for coordinated efforts between Centre and states to bring down indirect taxes levied on petrol and diesel,” said Das adding that states and central government are dealing with revenue pressures to get the country out of economic depression caused by COVID-19.

Emphasising the implications of rising fuel price on the cost of other commodities, Das said, “Diesel and petrol prices have an impact on the cost
side as well. High fuel prices affect the cost for alternative commodities
associated with it like cost of manufacturing, transportation and other aspects.”

Also Read: Government to privatise 4 state-run banks, including Central Bank of India, Bank of Maharashtra: Report

Concerns over Cryptocurrencies

Voicing RBI’s concern over the usage of cryptocurrency and its impact on the financial stability of the over all economy, Das said that the central bank is working on the process to launch its own digital currency.

“We’ve certain concerns regarding cryptocurrencies, at the same time we don’t want to left behind in the race of technology. Therefore, RBI is working on digital currency,” said Das adding that the central bank currency would be way different than cryptocurrency.