Reserve Bank Governor Shaktikanta Das has requested banks to stay watchful of the continued geopolitical developments and proactively take mitigating measures, together with elevating capital, to minimise the potential affect on their stability sheets.
The governor together with different RBI officers held conferences with MD and CEOs of choose public and sector banks on Wednesday and the day earlier than, the Reserve Bank of India (RBI) mentioned in an announcement.
In his introductory remarks, Das famous the “key role” performed by the banks in supporting the financial system all through the pandemic.
Further, he mentioned the banking sector has remained resilient and has continued to enhance regardless of dealing with numerous headwinds.
“He advised the banks to remain watchful of the recent geopolitical developments and take mitigating measures proactively, including raising of capital for ensuring that the potential impact on their balance sheets are minimised,” RBI mentioned.
Das additionally requested the banks to pay particular consideration to additional enhance their grievance redress programs and proceed to supply obligatory assist to the continued revival of financial exercise.
Among different issues, points referring to credit score off-take, outlook on asset high quality, assortment effectivity, shopper grievance redress, establishing of Digital Banking Units, resilience of IT infrastructure and cyber safety defences in banks, had been mentioned.
The conferences had been additionally attended by the deputy governors, M Okay Jain and M Rajeshwar Rao.
The ongoing Russia-Ukraine battle has impacted world provide chains, resulting in a spike in world commodity costs. Central banks, together with RBI, have taken a number of steps to tame rising inflation.