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
Watch Live: RBI Governor's Press Conference After Policy Announcement
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
