Noting the resilience of the domestic financial system with healthy balance sheets of banks, the Reserve Bank of India (RBI) Governor, Shaktikanta Das has said that there is no scope for any complacency and banks should continue to maintain their vigil around build-up of risks, if any. He complimented the banks on their improved financial performance and that of the whole banking sector.
In the meeting with banks’ MDs & CEOs, Das highlighted the issues relating to Business Model viability; outlier growth in personal loans; adherence to co-lending guidelines; Bank exposure to NBFC sector; Liquidity Risk Management; IT and Cyber security preparedness, operational resilience, digital frauds; and strengthening of the internal rating framework.
RBI Governor stressed that customer grievance redress mechanism and protection of customers’ interests are of paramount importance for the safety and stability of the financial system and that of individual financial institutions. The Governor also encouraged the banks to actively participate in RBI’s FinTech initiatives and give a further push to the Digital Banking Units (DBUs).
Meanwhile, RBI Governor held meetings with the MDs & CEOs of Public Sector Banks and select Private Sector Banks on February 14, 2024, in Mumbai. These engagements are part of Reserve Bank’s continuous interaction with the Senior Management of its Regulated/Supervised Entities. The previous such meeting was held on July 11, 2023.
