RBI Governor Shaktikanta Das asks Indian banks to be vigilant about evolving macroeconomic situation, take steps to minimise risks

Mumbai: Governor of the Reserve Bank of India Shaktikanta Das on Wednesday held meetings with chiefs of public and private sector banks and advised them to remain watchful of the macroeconomic situation. The Governor also discussed the impact of the rising interest rate scenario on bank borrowers and the wide gap between credit and deposit growth.

The meeting was also attended by deputy governor MK Jain and a few senior officials of the RBI.

“He (Shaktikanta Das) advised the banks to remain watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively so that the potential impact on their balance sheets is minimised and financial stability risks are contained,” the RBI said in a statement.


The Governor also acknowledged the crucial role played by commercial banks in supporting economic growth throughout the turbulent times since the outbreak of pandemic and the ongoing turmoil in financial markets.

“He further stated that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters,” the RBI statement read.

Bankers attending the meeting raised issues about the potential impact of rising interest rate on marginal borrowers, especially from the micro-finance segment.

Banks and the Governor also discussed issues relating to the lag in deposits vis-à-vis credit growth, asset quality, investments in IT infrastructure, adoption of new-age technology solutions and functioning of Digital Banking Units.