RBI Governor Das asks banks to take mitigating steps to minimise impact on balance sheets

Reserve Bank Governor Shaktikanta Das said the banking sector has remained resilient and has continued to improve despite facing various headwinds.

Reserve Bank Governor Shaktikanta Das has asked banks to remain watchful of the ongoing geopolitical developments and proactively take mitigating measures, including raising capital, to minimise the potential impact on their balance sheets.

The Governor along with other RBI officials held meetings with MD and CEOs of select public and sector banks on May 18 and the day before, the Reserve Bank of India (RBI) said in a statement.

In his introductory remarks, Mr. Das noted the "key role" played by the banks in supporting the economy throughout the pandemic.

Further, Mr. Das said the banking sector has remained resilient and has continued to improve despite facing various headwinds.

"Mr. Das advised the banks to remain watchful of the recent geopolitical developments and take mitigating measures proactively, including raising of capital for ensuring that the potential impact on their balance sheets are minimised," RBI said.

Mr. Das also asked the banks to pay specific attention to further improve their grievance redress systems and continue to provide necessary support to the ongoing revival of economic activity.