Governor of the Reserve Bank of India Shaktikanta Das stated that there is nothing wrong with young Indians having aspirations.
Governor of the Reserve Bank of India Shaktikanta Das has stated that banks need to manage liquidity proactively and keep the expansion of their deposits and credit in check.
According to Das, banks are able to raise money at competitive rates by offering infrastructure bonds. There are no reserve requirements for these bonds. It’s a good thing that these bonds are being utilized to support infrastructure projects. Mobile banking has made credit disbursement extremely quick, but deposit mobilization is still a physical process, Das said in an interview with the television network NDTV.
..According to Das, there is nothing wrong with the aspiring nature of young Indians. It really is a good development and is a natural process. We advise banks to keep a close eye on this development. Although there isn’t a problem right now, the RBI Governor warned that this could eventually cause a systemic liquidity problem.
Even though lending has been expanding, several banks reported a drop in deposits for the quarter that ended in June 2024 because consumers are increasingly looking for greater returns on their money by parking it in places like the capital markets. According to the Reserve Bank’s most recent figures, credit growth increased by 15.1% as of July 2024 compared to 14.6% annually. But deposit growth slowed down.
He clarified that the RBI’s actions against specific firms are corrective measures rather than punishments. “We supervise the businesses under our control both on and off site. The optimal usage of supervision has been created. We are keeping a close watch on the entities. We notify the relevant institutions and request a clear roadmap if we discover a deficiency,” he stated.
