Page 8 - Shaktikanta Das

Scaling the economic ladder: Indian savings climb, yet rungs remain

For instance, only 15 per cent of US households' assets are in banks, compared to 46 per cent in South Korea

Need unambiguous, clear focus on inflation: RBI Governor Shaktikanta Das

RBI Governor said that lag in deposit mobilisation compared to credit growth is a critical issue

No plans to allow business houses to promote banks: RBI Governor Das

Governor Shaktikanta Das on Friday said the Reserve Bank does not have any plan to allow business houses to promote banks at present. Allowing corporate houses to promote banks exposes one to conflict of interest risks and related-party transactions, Das said, speaking at an event organized by the Financial Express here. "At this point, there is no thinking in that direction," Das said, replying to a specific query on whether there is any consideration to allow business houses. The RBI had disqualified a long list of conglomerates from floating a lender in the last round of licensing around a decade ago. The issue was revived again in 2020, with a Reserve Bank of India (RBI) working group supporting it, given the potential to get the capital for helping meet the country's growth aspirations. Underlining that banks are different from other businesses, he said experience worldover has shown potential conflicts of interest and issues relating to related-party transactions, if busines

With growth steady, policy must focus on inflation: RBI Governor Das

Reserve Bank Governor Shaktikanta Das on Friday said the monetary policy has to be "clearly and unambiguously" focused on inflation in an environment like the current one, where growth is steady. Amid a debate around neutral rates, Das said "theoretical and abstract concepts" as arrived at are based on a person's judgment and cannot determine the policy in the real world. It can be noted that the RBI has been steadfastly maintaining the status quo on interest rates, and there is increasing dissent among some members of the rate-setting panel who are in favour of rate cuts to promote economic growth lately. Replying to those who flag the impact on growth because of the elevated interest rates, Das said that the growth has been robust even with the current interest rates and added that RBI is optimistic that its 7.2 per cent real GDP expansion estimate for FY25 is being achieved. Moreover, the nowcast team is pointing towards a 7.4 per cent growth in the June quarter as against the .

Neutral rate raised on shift in potential output, says RBI bulletin

"With headline GDP growth rates trending higher after the pandemic, a step up in the natural rate estimates appears appropriate," said Aditi Nayar, chief economist, ICRA

India's credit ratings upgrade is long overdue: RBI Guv Shaktikanta Das

Governor of the Reserve Bank of India Shaktikanta Das said that India is capable of meeting its external payment obligations and a credit ratings upgrade should happen soon

Too early to talk rate cut, won't give guidance: RBI Governor Das

RBI guv says expected credit loss norms in final state of examination, should be out in current financial year

RBI governor Das asks banks to strengthen governance, risk management

RBI governor Shaktikanta Das on Wednesday asked banks to further strengthen the governance standards, risk management practices and compliance culture. As part of the Reserve Bank's continuous engagement with the senior management of its regulated entities, Das held meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks. The governor in his opening remarks noted the continued improvement in banks' asset quality, loan provisioning, capital adequacy, and profitability, the RBI said in a statement. "While acknowledging the higher resilience and strength of the banking sector, he highlighted the importance of further strengthening the governance standards, risk management practices and compliance culture in banks," Das said. Persisting gap between credit and deposit growth; liquidity risk management and ALM-related issues; and trends in unsecured retail lending were among the issues which were discussed at length.

Investor confidence

Index inclusion also has risks

RBI using alternative data sources for economic insights: Shaktikanta Das

World from moving from 'era of data scarcity to abundance', says central bank governor

India at cusp of structural growth shift, says RBI gov Shaktikanta Das

The Indian economy recorded a growth of 8.2 per cent in FY24 and averaged 8.3 per cent in the last three financial years

'We are positive about growth, disinflation', says RBI Governor Das

Addressing the 188th AGM of Bombay Chamber of Commerce & Industry, RBI Governor Shaktikanta Das says, "India is at the threshold of a major structural shift in its growth trajectory

Growth is important, but not at cost of unacceptable risks: RBI governor

Business models designed for profitability could contain vulnerabilities that may not be apparent, says Shaktikanta Das

Not acting on unsecured lending could have created bigger problem: Das

RBI Governor Shaktikanta Das on Thursday said not acting on unsecured lending could have created a "bigger problem", and RBI's actions on such practices have had the desired impact of slowing down growth in the riskier segment. Addressing an international conference on financial resilience at the RBI's College of Supervisors here, Das said restrictions on unsecured lending were the result of a view that there could be a potential problem in the credit market because of growth in unsecured lending. The overall headline parameters were looking good, but there was "clear evidence" of dilution of underwriting standards, lack of proper appraisals and a mentality to join the bandwagon for driving up the unsecured lending among some lenders, he added. "We thought if left unattended, these vulnerabilities can become a bigger problem. So, we thought it is better to act in advance and slow down the credit growth," Das said. He expressed satisfaction that the RBI's action has had the desired

Rural demand picking up, likely to hold this year: RBI Governor Das

RBI guv says premature to change stance, FY24 CAD may be less than 1%

India must avoid 'adventurism', focus on bringing down inflation: RBI chief

The central bank kept the key repo rate unchanged at 6.5% for an eighth straight policy meeting earlier this month saying robust economic growth will give it space to focus on bringing down inflation

Budget 2024: Will the govt provide income tax relief to salaried class?

A report by a leading national-daily claim the upcoming Budget for FY25 may emphasise tax reductions for low-income earners rather than increasing welfare expenditures

RBI's reserve maintenance system for banks fails on Tuesday, say traders

Indian banks need to park 4.5 per cent of their net deposits with the central bank and must maintain at least 90 per cent of this requirement every day

Must invest adequately in IT systems: RBI Governor Shaktikanta Das to banks

Underscores urgency to keep up with growth of digital payments

Last mile journey to 4% inflation target is sticky: RBI Governor Das

Even the high rates of growth are enabling us to catch up with that level. So, no, signs of over- heating. On rate hikes being off the table, nothing is off the table.