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 Wednesday and the day before, the Reserve Bank of India (RBI) said in a statement.
In his introductory remarks, Das noted the “key role” played by the banks in supporting the economy throughout the pandemic.
Further, he said the banking sector has remained resilient and has continued to improve despite facing various headwinds.
“He 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.
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.
Among other matters, issues relating to credit off-take, outlook on asset quality, collection efficiency, consumer grievance redress, setting up of Digital Banking Units, resilience of IT infrastructure and cyber security defences in banks, were discussed.
The meetings were also attended by the deputy governors, M K Jain and M Rajeshwar Rao.
The ongoing Russia-Ukraine war has impacted global supply chains, leading to a spike in global commodity prices. Central banks, including RBI, have taken several steps to tame rising inflation.