No scope for complacency and maintain vigil on build-up of risks, says RBI Governor

The Reserve Bank of India (RBI) Governor Shaktikanta Das has said that there is no scope for any complacency and banks should continue to maintain their vigil around any build-up of risks in the banking system. Das said this at a meeting with managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private lenders.

The RBI Governor complimented banks on their improved financial performance and that of the whole banking sector. Das highlighted the issues relating to business model viability and outlier growth in personal loans. He also highlighted issues including adherence to co-lending guidelines and the bank's exposure to non-banking financial companies (NBFCs), liquidity risk management, IT and cyber-security preparedness.

He further underlined the need to improve operational resilience, prevent digital fraud and strengthen the internal rating framework. The RBI Governor also stressed the need to address customer grievances and protect their interests as a matter of paramount importance.