Risk averseness will be self-defeating for banks: RBI Governor Shaktikanta Das

Bankers point out to past experiences and feel that containing loans from getting sour is an important objective.  Das said there is a scope for banks to improve their ability to avert frauds from happening and added that their risk frameworks should be able to smell vulnerabilities .

The Governor said, overall, the banking system continues to be sound and stable and the lenders will have to evolve a new model of growth in the times to come.

He said the RBI will withdraw its COVID-19 pandemic-related dispensations in a calibrated manner, but will not do so very soon. Appreciating the work done by the government in response to the crisis, Das termed it as fiscally responsible, prudent and well calibrated.