The Reserve Bank of India Governor Shaktikanta Das on Thursday reiterated that RBI is fully committed to use all policy tools to secure a robust recovery of the economy from the debilitating effects of the pandemic. He was speaking at the Economic conclave organised by a private media house. He said that the collective endeavour resulted in stabilisation of the financial sector and provided necessary liquidity support to maintain the flow of credit in the economy. He noted that maintaining the health of the banking sector remains a policy priority. As I have stressed on several earlier occasions, the strength of a banking system depends on building its capital base while at the same time focusing on corporate governance and ethics-driven compliance culture. Banks and NBFCs need to enhance their skillset to identify risks early, measure them, mitigate the risk proactively and build up adequate provisioning buffers to absorb potential losses. They should also augment their internal stress testing framework with severe but plausible stress scenarios. Upgradation of IT infrastructure and improving customer services together with cybersecurity measures are other key issues which also need attention.
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