RBI asks banks to remain vigilant to any emerging signs of vulnerabilities

RBI Governor Shaktikanta Das on Tuesday asked banks to remain vigilant to any emerging signs of vulnerabilities and take timely remedial measures to mitigate the risks.

In a statement, the Reserve Bank of India (RBI) said the governor held separate meetings with the MD and CEOs of public sector banks and certain private sector banks through videoconferencing.

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In his opening remarks, Das acknowledged the improved financial and operational resilience of the banking sector that imparts strength to financial stability.

He emphasised the need for banks to continue providing necessary support in the revival of economic activity, the RBI said.

"He also advised the banks to remain vigilant to any emerging signs of vulnerabilities and take timely remedial measures to mitigate the risks and maintain the stability of not only the institutions themselves but also of the overall financial system," it said.

Several other matters, including credit flows, especially to micro and small enterprises, were also discussed during the meetings.

As per the statement, discussions also took place on matters like 'outlook for stressed assets and measures for mitigation', 'pricing of risks', 'collection efficiencies' and 'engagement of banks with fin-tech entities".

Implementation of certain regulatory measures for ensuring consumer protection were also taken up in the meeting.

RBI Deputy Governors M K Jain, M Rajeshwar Rao and T Rabi Sankar also attended the meetings.