NITI Aayog’s vice-chairman Rajiv Kumar, in a conversation with CNBC-TV18, claimed that he has never seen the financial sector in a situation like this before.

“This is an unprecedented situation for a government of India from the last 70 years. We have not faced this sort of a liquidity situation where the entire financial sector is up in a churn and nobody is trusting anybody else. It is not just the government and the private sector, within the private sector nobody wants to lend to anybody else,” he said.

“You may have to take steps, which are out of the ordinary and it takes a lot for a government which has inherited and which has got all the systems and inertia etc to try and think that and go there. Ours is not a system where we are encouraged to take risks. It is just the opposite. We are encouraged to be as conservative as possible,” Kumar added.

First Published:Aug 23, 2019 11:48 AM IST