Turnaround in the Indian banking system a cornerstone of India’s success, says RBI Governor
Covid pandemic and this has helped the Indian economy to be the bright spot amid global economic meltdown, Reserve Bank of India Governor Shaktikanta Das said.
«The remarkable turnaround in the Indian banking system has been a cornerstone of India’s success story in the recent years. Today, the Indian banking system is well-placed to support India’s growth story in the years ahead,» Das said Thursday at Mint BFSI summit in Mumbai.
He said that the trust on the banking and financial system that is built over a period of time through sustained efforts needs to be preserved.
«The Reserve Bank has committed itself to safeguard the trust factor of the Indian financial system.
Our recent efforts to improve regulation and supervision are guided by this basic principle,» Das said.
RBI has over the past few years improved its regulatory and supervisory system with keeping the emerging trends like digital penetration and credit analytics in mind.
The central bank’s supervisory systems have been recalibrated to attune them to the dynamics of the financial sector in a way that helps early detection of possible distresses.
«We have considerably strengthened supervisory macro and micro data analytics to capture potential and emerging risks. We deep dive into the business models of banks and other lending entities and closely monitor their asset liability mismatches and funding stability,» the governor said.
