RBI: Instability may come in some banks? RBI expressed concern

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RBI Governor Shaktikanta Das: Reserve Bank of India Governor Shaktikanta Das said a big thing about the country’s banks in Mumbai today. He has given a message to the banks that they should keep the safety of the customers’ money at the top. Apart from this, the RBI governor has also expressed apprehension that some concerns are emerging on the issue of corporate governance in some banks, which may result in instability in banks.

Risk of instability for banking sector – RBI Governor

According to the RBI governor, the boards and managements of the country’s banks have to take care to look into the factors that could lead to instability for the banking sector of the country as a whole in the future. He said that the country’s central bank cannot allow any kind of insecurity on public money.

referred to the US banking crisis

 

On Monday i.e. today, the Reserve Bank of India said this in a conference organized for the directors of the country’s central banks. He stressed that in order to maintain the strength of the banking sector, any such signals should be immediately identified which may be red flags in the future. For this, giving the example of America’s banking crisis, he said that India will have to take a cautious approach before looking into this situation.

Must follow RBI guidelines

Giving a strong message to the country’s banks to follow the guidelines, the RBI Governor said, “The need for a strong government framework is the first and most important step for any country’s banking sector.” So the banks of the country should follow the guidelines of the central bank so that the banking sector is ready for sustainable financial performance.

Banks need to work on seven important subjects

There are seven important themes for the country’s banks to work on and by following them the country’s banks can remain strong. However, referring to the same issue, he said that select banks are showing some laxity in following RBI guidelines and this could lead to a volatile environment for the banking sector in the future.