Won't like banking system to be in a situation of loose money: RBI Governor

RBI will take steps if there's liquidity shortage, said Shaktikanta Das

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses.
 

The RBI is also looking at new governance reforms for state-owned banks but will not "throttle" their functioning, Das told reporters.

Highlights of what the RBI governor said:

— As and when a decision on interim dividend is taken, RBI will announce it.

— State of NPAs and health of public sector banks a major focus currently

— Have met private and PSU bankers on liquidity issue; RBI has announced extra Rs 10,000 cr of open market operations

— Some issues faced by MSMEs come in RBI's domain but most of them are under the govt