NDTV EXCLUSIVE: RBI Governor’s advice to banks – Even today you have to go to the branch for deposits, bring in a deposit scheme | NDTV EXCLUSIVE: RBI Governor to banks

NDTV EXCLUSIVE: RBI Governor's advice to banks - Even today you have to go to the branch for deposits, bring in a deposit scheme | NDTV EXCLUSIVE: RBI Governor to banks


New Delhi:

RBI, i.e. Reserve Bank of India Governor Shaktikanta Das says that young Indians are ambitious, and instead of depositing money in banks, they are investing money in volatile markets like stock market and mutual funds. This is not going to cause any immediate problem, but if this trend continues, then there may be a liquidity problem in the future, so banks should keep an eye on this and think of solutions, and launch such schemes or products that will attract deposits to them.

“It is good for Indians to invest in shares…”

During an exclusive interview with NDTV Editor-in-Chief Sanjay Pugalia, the RBI chief said, “Indian youth are very ambitious in the internet age, and this happens all over the world… Everything comes out through the internet, and the youth invest money in different places… This is a good trend, and it shows that the youth have faith in the country’s economy… We are just advising banks to be proactive on this… This trend is not going to cause any immediate harm, but in the future it can create structural liquidity problems…”

“Long term deposit, credit growth imbalance is not good…”

Shaktikanta Das said, “If the difference between deposit and credit growth continues, it will create liquidity problems… If credit is increasing but deposits are not increasing, there will be no problem for a year or six months… This trend has also started from last year… But if it continues, it can cause problems, so banks will have to work very carefully on liquidity management in a proactive manner and maintain a balance between deposit and credit growth…”

Along with this, the RBI governor also said that banks are also understanding this future problem. He said, “The positive thing is that banks are also understanding this, and many banks have started raising money through infrastructure bonds… The specialty of infrastructure bonds is that they are available at attractive prices, and from the point of view of banks, infrastructure bonds are not deposits, so banks do not have any reserve requirement, that is, there will be no restriction on banks to keep so much amount in CRR…”

The RBI chief also said, “There is another new thing which has been happening for some years… Due to technology, credit growth and credit disbursement has become very fast… Today, a loan can be taken instantly through any mobile, but till date one has to go to the bank for deposits… That is why during the last monetary policy, I had said that banks should bring new deposit products and use their branch network…”

Further, speaking on the related issue of stability of banking, Shaktikanta Das said, “Attention has been paid to the level of governance of banks and NBFCs, and it has also seen improvement in the last few years…”


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