Global Fintech Fest
Closely monitoring all credit areas, not just microfin says RBI Das
This story was originally published at 21:10 IST on 28 August 2024
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MUMBAI – The Reserve Bank of India is closely monitoring all areas of credit growth and not just microfinance, Governor Shaktikanta Das said on the sidelines of the Global Fintech Fest. This was in response to a question regarding rapid growth in credit towards microfinance segment.
"We are monitoring all aspects of credit market, and whenever there is any concern in any segment, the central bank will be proactive and will take measures. I would not like to mention any specific sector as of now. All sectors of the credit growth we are monitoring very closely," he said.
While announcing the August Monetary Policy outcome, Das said that certain segments of personal loans continue to witness high growth. He also said that excess leverage through retail loans, mostly for consumption purposes, needs careful monitoring from macro-prudential point of view.
When asked about the issue of deposit mobilisation, Das said that banks are mindful of the issue and are taking necessary actions. In the August Monetary Policy Committee meeting, Das had urged banks to develop innovative products to attract depositors, as they were shifting to other alternatives such as mutual funds and insurance companies to get better returns.
As per latest data, banks' loan book growth remains higher than that of bank deposits. Bank deposits grew 10.9% on year to 213.28 trln rupees as of Aug 9, compared with loan book growth of 13.6% on year. End
Reported by Kabir Sharma and Sachi Pandey
Written by Kshipra Petkar
Edited by Deepshikha Bhardwaj
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