Shaktikanta Das Briefing Updates: Working Group’s Report On Banks Should Not Be Taken As RBI’s View: Das
Shaktikanta Das, governor of the Reserve Bank of India (RBI), reacts during a news conference in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Shaktikanta Das Briefing Updates: Working Group’s Report On Banks Should Not Be Taken As RBI’s View: Das

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Have Strengthened Supervisory Mechanism: Das

  • Over the last two years have strengthened and deepened our supervisory systems and mechanisms
  • The incidents of two banks where we had to intervene did not happen overnight
  • Our first effort is to always work with the management and resolve the situation
  • Only when this fails, we intervene in the best interest of depositors
  • Whether it is a monetary penalty or supervisory action which has to be taken will be decided on case-to-case basis
  • HDFC Bank has had previous issues as well
  • We had concerns about certain deficiencies and we felt it was required that the bank strengthen its IT infrastructure before launching new products
  • We are sure that HDFC Bank will comply with our directions
  • Cannot be putting thousands of customers through disruption for hours together
  • Public confidence in digital banking needs to be maintained
  • There is a need for all banks, NBFCs and financial entities to invest more in their IT and technology
  • They must also strengthen all their systems so that public confidence is maintained
  • The entire landscape is going to become more IT-dependent so there is a need for more investments

Das On Fund Flows

  • Our FX strategy is to prevent undue volatility and see that there is orderly evolution of the exchange rate
  • Our assessment is that all the liquidity that has been injected by the RBI has achieved its objective
  • Getting steady FDI and FPI inflows
  • Constantly monitoring the situation and will take action at the appropriate times

RBI Wants NBFCs To Remain Robust

  • The RBI wants the NBFCs to remain robust and continue to fulfill its role of reaching last mile lending
  • This is why the RBI is looking to strengthen governance structure and capital base for NBFC sector
  • We are looking to bring in nuanced, scale-based regulation as the NBFC sector has companies of varying sizes

Supply Side-Management Key To Manage Inflation: Patra

  • The MPC expects inflation to soften over the next two months
  • If supply side management is timely and effective, we will see inflation trajectory completely changing
  • Supply side management is the prime instrument to use at this juncture.

Inflation Targetting 'Not Junked': Das

  • Inflation targetting has not been junked and is uppermost in our agenda
  • We give it highest priority in our monetary policy decision making
  • Our expectations on inflation have not materialised
  • We are dealing with an extraordinary situation
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