Highlights: RBI Governor Shaktikanta Das On Future Of Banking In India

RBI Governor Shaktikanta Das talked about inflation, use of AI, cybersecurity, financial stability and much more.

Highlights: RBI Governor Shaktikanta Das On Future Of Banking In India

RBI Governor Shaktikanta Das in an exclusive conversation with NDTV's Editor-In-Chief Sanjay Pugalia

In a special and exclusive conversation, RBI Governor Shaktikanta Das and NDTV's Editor-In-Chief Sanjay Pugalia disuss the Indian economy and the future of banking in India. 

RBI Governor Shaktikanta Das talked about inflation, use of AI, cybersecurity, financial stability and much more. 

Here are the highlights of the interview- 

Aug 20, 2024 16:55 (IST)
RBI Governor Shaktikanta Das Exclusive:
"We have released an agenda for RBI at 100 years. Driving philosophy of this is to keep RBI future-ready. Everything here has been a team effort. I would like to complement the entire team at RBI, and also congratulate all the regulated entities who have done very well," says RBI Governor Shaktikanta Das.
Aug 20, 2024 16:50 (IST)
RBI Governor Shaktikanta Das Exclusive:
"Cyberattack is a risk which is rising as technology continues to grow. We have worked on creating awareness around cyber risks for customers. We are also creating a public repository for digital lending apps," says RBI Governor Shaktikanta Das. 

"We are regularly in touch with banks and NBFCs over cybery security, constantly working with them to improve the qualtiy of this security.
When Covid started, one of the first measures was to issue a clear advisory. That was the time when we could expect maximum attacks on IT systems," he added.  
Aug 20, 2024 16:42 (IST)
RBI Governor Shaktikanta Das On Fintech Regulation:
"Serious fintech players understand RBI's regulatory approach very well. Our bilateral engagement with fintech players and associations have been great.Our fintech department has holding regular meetings individually and as a group. Last year we announced a fintech SRO, which will act as an interface between RBI and fintech players," says RBI Governor Shaktikanta Das. 

"We are making good progress on the fintech SRO. Any fintech player, when they come into a regulated space, there are rules and regulations they must follow. Whenever we see any areas where risk might be building up, we have taken action." 
Aug 20, 2024 16:38 (IST)
RBI Governor Shaktikanta Das Exclusive:
"RBI's focus is mainly to ensure financial and monetary stability of the country. We are a not-for-profit organisation, that's why we transfer a surplus to the government every year, not any profit or loss" says RBI Governor Shaktikanta Das. 
Aug 20, 2024 16:37 (IST)
RBI Governor Shaktikanta Das On Use Of AI:
"AI and other modern methods are being used to sharpen supervision. Through various analytics tools, we are analysing a lot of the problems facing the sector. But this is a constant process and must be re-evaluated continuously," says RBI Governor Shaktikanta Das. 
Aug 20, 2024 16:35 (IST)
Shaktikanta Das On RBI's Corrective Measures:
"RBI's actions against certain entities is not a punishment, it is a corrective measure. We conduct on-site and off-site supervision of entities we regulate. Supervision has been developed and used to its best. We are maintaining an eagle's eye on the entities. When we find a deficiency, we alert the entities and ask for a clear roadmap. Our expectation is that they address the deficiency in time. Our action comes after the entities have been given time to address the issues. Supervisory restrictions prioritise depositor and consumer interest," says RBI Governor Shaktikanta Das. 
Aug 20, 2024 16:31 (IST)
RBI Governor Shaktikanta Das Exclusive:
"Young Indians are aspirational and there is nothing wrong in it, it is a natural process and is actually a positive development.  Our advise to banks is that you should carefully monitor this change. Currently this is not an issue, but in the future, this can lead to a structural liquidity issue," says RBI governor Shaktikanta Das. 

"Banks have to be proactively careful about dealing with liquidity management. Credit and deposit growth must be in balance. Banks are raising funds through infrastructure bonds, at attractive rates. Such bonds do not have reserve requirements. These bonds are being used to finance infrastructure schemes, which is a positive move. Credit disbursement has become very fast owing to mobile banking, but deposit mobilisation is still a physical activity."
Aug 20, 2024 16:28 (IST)
RBI Governor Shaktikanta Das Exclusive:
"In the banking sector, RBI's efforts for the last 5-6 years has been to improve governance related aspects such as risk management, compliance culture, I am happy to mention that overall governance standars in Indian banking system has improved a lot in last few years," says RBI Governor Shaktikanta Das. 
Aug 20, 2024 16:24 (IST)
RBI Governor Shaktikanta Das Exclusive:
"How GDP growth and other economic activity will move is the other thing RBI is focusing on. Lot of important reforms have taken place in the last few years. Monetary policy framework, IBC, Make In India, etc have all happened in recent years. Pending reforms such as those in agricultural marketing and supply sectors, labour, others have to be completed," says RBI Governor Shaktikanta Das. 

Aug 20, 2024 16:22 (IST)
RBI Governor Shaktikanta Das on price and financial stability:
"We have to ensure price stability in the economy. Price stability gives a lot of confidence to the consumer. Maintaining inflation will also bring investor confidence. The second thing we must maintain as a regulator is Financial stability, that is also very important," says RBI Governor Shaktikanta Das. 

Aug 20, 2024 16:20 (IST)
RBI Governor Shaktikanta Das On Inflation:
"We cannot take fuel and food out of the equation and say that inflation is falling. It is not looking at the issue through the common person's lens. Food inflation share in overall consumption basket is 46%," says RBI Governor Shaktikanta Das. 

"Nearly 50% of a household's spending is toward food, future data will determine where rates will move. We have confidence that inflation will fall and come around 4%, but for this year, average CPI inflation rate is 4.5%, There are a lot of uncertainities to account for right now."
Aug 20, 2024 16:16 (IST)
RBI Governor Shaktikanta Das On Inflation:
"We never said inflation will go below under 4%, our target is durable alignment to the target, to stay close to 4%. A one-off 4% reading cannot drive policy, we have to be patient," says RBI Governor Shaktikanta Das. 

Aug 20, 2024 16:13 (IST)
RBI Governor Shaktikanta Das On Affects Of Covid On World Economy
"Covid has resulted in permanent output loss in every economic in the world, but the way we emerged out of these crisis is very exemplary in India's case," says RBI Governor Shaktikanta Das. 

Aug 20, 2024 16:11 (IST)
RBI Governor Shaktikanta Das Exclusive:
"India has handled the Covid crisis and post-Covid crises very well, last 5-6 years have been years of great volatility. India's navigation of these crises has been highlighted by efforts of the people. RBI and the government's coordinated efforts have also helped very much," says RBI Governor Shaktikanta Das. 
Aug 20, 2024 16:09 (IST)
RBI Governor Shaktikanta Das Exclusive:
"Not many people know fully what the RBI does, RBI affects the life of every person...Our attempt has been to ensure that RBI's communication and its outreach efforts go well," says RBI Governor Shaktikanta Das.
Aug 20, 2024 16:07 (IST)
RBI Governor Shaktikanta Das Exclusive:
"Starting April 2024, this is RBI's 90th year, Tt is a very momentous year for RBI. RBI functioning started in 1935," says RBI Governor Shaktikanta Das.
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