RBI Governor Shaktikanta Das has urged banks to remain attentive to potential risks in the banking system, emphasizing that there is no room for complacency.
In a meeting with bank executives, Das acknowledged the banks’ improved financial performance but stressed the need to address issues such as viability of business models, excessive growth in personal loans, adherence to co-lending guidelines, exposure to the non-banking financial company (NBFC) sector, liquidity risk management, IT and cyber security, operational resilience, digital fraud, and strengthening of internal rating frameworks.
He also underscored the importance of customer grievance redressal mechanisms and protecting customer interests for the overall safety and stability of the financial system.
Additionally, Das called on banks to actively engage in the RBI’s fintech initiatives and support the growth of Digital Banking Units (DBUs).
Ratings agency ICRA predicts a decline in gross and net non-performing assets (NPAs) by March 2025.
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