INSUBCONTINENT EXCLUSIVE:
RBI Governor Shaktikanta Das''Remain alert to any sign of vulnerabilities and take timely remedial measures to mitigate risks and maintain
stability,'' advised Reserve Bank of India's (RBI) Governor Shaktikanta Das today while addressing managing directors (MD) and chief
executive officers (CEOs) of public sector banks and some of the private sector banks. The RBI defines that those banks which are in the
process of financial intermediation are faced with various kinds of financial and non-financial risks, such as credit, interest rate,
foreign exchange rate, liquidity, equity price, commodity price, legal, regulatory, among few others. The risks are interdependent and
events that affect one area of risk can have ramifications for a range of other risk categories
Banks should lend importance to improve the ability to identify, monitor and control the overall level of risks undertaken, according to
the central bank.In his address today, the RBI Governor acknowledged the improvement in financial and operational resilience of the
Mr Das stressed the need for banks to continue providing necessary support in the revival of economic activity. The meeting was held over a
video conference and was attended by Deputy Governors M K Jain, M Rajeshwar Rao and T Rabi Sankar, according to a statement released by the
RBI on Tuesday, November 2.Credit flows, especially to micro and small enterprises, watching out for stressed assets and keeping mitigating
measures ready, pricing of risk, collection efficiencies, engagement of banks with fintech companies, and implementation of certain
regulatory measures to ensure consumer protection, were among the other issues that were discussed between the RBI and banks
today.Meanwhile, the RBI also stated today that the sale of stressed assets by lenders must be done at an earlier stage to allow for optimal
recovery by asset reconstruction companies, as per a report published by a committee appointed by the central bank.
