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RBI Governor Shaktikanta Das addresses Banking Sector Concerns, Read what he said


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Reserve Bank of India (RBI) Governor Shaktikanta Das addressed managing directors and chief executive officers of public and private sector banks, stressing the need for continued vigilance in identifying risks within the banking system.

No Room for Complacency:

Das acknowledged the resilience of the financial system but cautioned against complacency. He urged banks to stay alert and monitor any potential risks carefully.

Concerns Over Loan Growth and Exposure:

Das expressed concern over the rapid growth of personal loans, highlighting it as an area of particular attention. He also discussed banks’ exposure to non-banking finance companies (NBFCs), citing potential risks.

Mitigating Risks:

The RBI had increased risk weights for unsecured loans and loans to NBFCs in response to concerns raised. Das emphasized the importance of business model viability, adherence to co-lending guidelines, and effective liquidity risk management.

Cyber Security and Operational Resilience:

Issues pertaining to IT and cyber security preparedness, operational resilience, and combating digital fraud were also highlighted. Strengthening internal rating frameworks was stressed to bolster risk management.

Protecting Customer Interests:

While recognizing banks’ improved financial performance, Das underscored the significance of safeguarding customer interests. He emphasized the necessity of robust grievance redress mechanisms for maintaining financial system stability.

Inclusive Engagement:

The interaction involved Deputy Governors and Executive Directors from the RBI, facilitating ongoing dialogue and collaboration between regulators and banking institutions.

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