Ask RBI Govt Banks to be vigilant about geopolitical developments

Reserve Bank Governor Shaktikant Das has asked banks to be vigilant about ongoing geopolitical developments and take measures to mitigate their balance sheets, including raising capital to minimize potential impact.

The Reserve Bank of India (RBI) said in a statement that the governor and other RBI officials met on Wednesday and the day before with MDs and CEOs of selected public and sector banks.

In his introductory remarks, Das referred to the “key role” played by banks in supporting the economy throughout the epidemic.

He added that the banking sector has remained resilient and has continued to improve despite facing various headaches.

“He advised banks to be aware of the recent geopolitical developments and to take proactive mitigation measures, including raising capital, to ensure that their balance sheets have a potential impact,” the RBI said.

Slave banks have been asked to pay special attention to further improving their grievance redressal system and continue to provide necessary assistance in reviving ongoing economic activity.

Among other topics discussed were credit of tech, asset quality, collection efficiency, consumer grievance redressal, setting up of digital banking units, resilience of IT infrastructure and cyber security protection in banks.

The meeting was attended by Deputy Governor, MK Jain and M Rajeshwar Rao.

The ongoing Russia-Ukraine war has affected the global supply chain, leading to rising commodity prices. Central banks, including the RBI, have taken a number of steps to curb rising inflation.