India's financial sector strengthens with macroeconomic stability, RBI Governor says, while monitoring potential issues.
India's financial sector is strengthening due to macroeconomic stability, according to RBI Governor Shaktikanta Das. The banking sector has a well-capitalized balance sheet and improved NBFC and Urban Cooperative Banks. However, four potential issues need monitoring: households shifting savings to alternative investments, potential exposure to structural liquidity issues, excess leverage through retail loans for consumption, and issues with top-up housing loans. Banks are urged to focus on mobilizing household financial savings, adhere to regulatory guidelines, and strengthen risk management frameworks.
August 08, 2024
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