RBI Governor Addresses Deposit Mobilisation and Fraud Issues at BFSI Summit

RBI Governor Shaktikanta Das Highlights Critical Issues in Financial Landscape

Mumbai, India – In a recent address at the ‘Modern BFSI Summit 2024’, RBI Governor Shaktikanta Das emphasized the need for innovations in India’s financial landscape to make it more inclusive. He identified deposit mobilisation and fraud prevention as key issues currently being monitored by the central bank.

Das expressed concern over the slow growth in deposits, stating that it could potentially expose the financial system to structural liquidity issues. He called the lag in deposit mobilisation compared to credit growth a “critical issue” and urged banks to focus on robust credit underwriting to address this imbalance.

Additionally, Das highlighted the rise in digital frauds, particularly those involving mule bank accounts. He urged banks to enhance their monitoring systems to detect and prevent fraudulent activities, emphasizing the importance of vigilance in this area.

The Governor also addressed the increasing share of retail portfolios in the financial system, pointing out potential risks associated with delinquency levels and excessive interest rates in microfinance loans. The RBI has taken steps to mitigate these risks and ensure the stability of the financial system.

Furthermore, Das acknowledged the challenge posed by climate change to economic growth and announced plans to tackle climate-related risks and provide climate financing. He cautioned against the risk of greenwashing and stressed the need for vigilance in this area.

In conclusion, Das ruled out the possibility of allowing large business houses into banking, emphasizing the importance of sound, healthy, and well-governed banks that can meet credit requirements through technological innovations. Despite the challenges, he assured that the RBI is committed to addressing them and ensuring the stability of the financial system.