Take steps to minimise impact of geopolitical developments on balance sheets, RBI’s Das urges banks

Shaktikanta Das

Shaktikanta Das | Photo Credit: FRANCIS MASCARENHAS

Reserve Bank Governor Shaktikanta Das has asked banks to remain watchful of the ongoing geopolitical developments and proactively take mitigating measures, including raising capital, to minimise the potential impact on their balance sheets.

The Governor, along with other RBI officials, held meetings with MD and CEOs of select public and sector banks on Tuesday and Wednesday, the Reserve Bank of India (RBI) said in a statement.

In his introductory remarks, Mr. Das noted the ‘key role’ played by the banks in supporting the economy throughout the pandemic.

Further, he said the banking sector had remained resilient and had continued to improve despite facing various headwinds.

"He advised the banks to remain watchful of recent geopolitical developments and take mitigating measures proactively, including raising of capital for ensuring that the potential impact on their balance sheets are minimised," the RBI said.

Mr. Das also asked the banks to pay specific attention to further improve their grievance redressal systems and continue to provide necessary support to the ongoing revival of economic activity.

Issues relating to credit off-take, outlook on asset quality, collection efficiency, consumer grievance redress, setting up of Digital Banking Units, resilience of IT infrastructure and cybersecurity defences in banks were discussed.

The meetings were also attended by deputy governors M.K. Jain and M. Rajeshwar Rao.

The ongoing Russia-Ukraine war has impacted global supply chains, leading to a spike in global commodity prices. Central banks, including the RBI, have taken several steps aimed at taming rising inflation.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 19, 2022 7:38:15 pm |