HomeTech newsRBI Governor: In a meeting with the MD-CEOs of banks, the RBI...

RBI Governor: In a meeting with the MD-CEOs of banks, the RBI governor expressed concern over the decrease in deposits!

RBI Governor Meeting With Banks: Ahead of the fall in retail inflation and the meeting of the Monetary Policy Committee to be held in December, RBI Governor Shaktikanta Das directed public sector banks and private banks to Had a big meeting with the Managing Directors and CEOs of Private Banks. The RBI governor praised the important role played by commercial banks during the pandemic and the upheaval in the financial market. But the RBI governor has also expressed concern about the decline in deposit growth compared to the demand for loans.

RBI increased the repo rate by 1.90 percent in the meeting of the Monetary Policy Committee four times. After this step of RBI, the banks immediately made the loan expensive. But compared to that, it was stingy in increasing the deposit rates. The result of which is that even though there has been a tremendous increase in the credit growth of the banks i.e. the demand for loans, the deposit growth rate of the banks has not increased in comparison to that. Banks now have to face cash crunch. Due to not getting much return, people are trying to keep money in banks.

And on Wednesday, when the RBI Governor met the CEOs of the banks, they raised the issue of shortfall in deposits. Apart from this, he also discussed issues like asset quality of banks, investment in IT infrastructure of banks, adoption of new age technology solutions, functioning of digital banking units in this meeting.

Earlier, the RBI governor said that despite all the challenges, India’s banking sector has stood firm in terms of all-round performance. In view of the ever-changing macroeconomic situation, he has cautioned banks to be cautious of global spillovers. Also advised to take such steps so that the impact on the balance sheet of the banks can be reduced and the risk of financial stability can be controlled.

News Reels

read this also

Property Price Hike: Boom in the property market! The prices of houses increased the most in Delhi-NCR

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments