look news india
Mumbai: As a result of timely steps taken, the growth of unsecured loans in the country has slowed down. Reserve Bank Governor Shaktikanta Das said at an event that loan growth in these sectors has slowed down and we have decided to curb loans.
Last year, the Reserve Bank had raised the risk weight on consumer loans disbursed by commercial banks and non-banking financial companies by 25 basis points to 125 per cent.
The Reserve Bank is capable of dealing with any crisis by using the powers at its disposal in a timely manner. Our efforts to identify the crisis are continuing. Surveillance is becoming increasingly complex. Talking about new technology, he said that Artificial Intelligence (AI) is helping banks and NBFCs to identify potential threats.
The Reserve Bank does not make frequent regulatory changes unless deemed necessary. Das also said that India's financial position is much stronger now than during the Covid period. In the race for growth, banks and NBFCs should not take unacceptable risks and should have strong risk mitigation structures. Business models are designed keeping profitability and growth in mind but sometimes such models prove to be weak and impractical.