Reserve Bank Governor Shaktikanta Das has advised banks to remain vigilant of recent geopolitical developments and to take proactive mitigating measures, such as capital raising, to ensure that the potential impact on their balance sheets is minimized.
The Governor held meetings with the CEOs and MDs of select public and private sector banks on May 17 and 18. Deputy Governors MK Jain and M Rajeshwar Rao, as well as a few senior RBI officials, were also present at the meetings.
In his opening remarks, the Governor emphasized the key role banks played in sustaining the economy throughout the pandemic. He also stated that despite various headwinds, the banking sector has remained resilient and has continued to improve. He urged banks to pay special attention to improving their grievance redress systems and continuing to provide the necessary support to the ongoing revival of economic activity.
Credit offtake, asset quality outlook, collection efficiency, consumer grievance redress, setting up of Digital Banking Units, the resilience of IT infrastructure and cyber security defenses in banks, and other topics were also discussed.
