The Reserve Bank Governor Shaktikanta Das has asked banks to be watchful about the ongoing geopolitical developments and take action proactively, including raising capital, to minimise the impact on their balance sheets.
The governor along with other RBI officials held meetings with the MD and CEOs of select public and sector banks on Wednesday and the day before, the Reserve Bank of IndiaReserve Bank of India RBI said in a statement.
In his introductory remarks, Das noted the key role played by banks in supporting the economy throughout the epidemic.
He said that the banking sector has remained resilient and has continued to improve despite various challenges.
He advised banks to be watchful of the recent developments and take mitigating measures proactively, including raising capital to make sure that the potential impact on their balance sheets is minimised, as well as the potential impact on their balance sheets, he said.
The banks should continue to provide the necessary support to the ongoing revival of economic activity, as per the demands of the banks to improve their grievance redress systems.
Among other issues were discussed: 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.
The deputy governors, M K Jain and M Rajeshwar Rao, also attended the meetings.
The ongoing Russia-Ukraine war has impacted global supply chains, leading to a spike in global commodity prices. Central banks, including RBI, have taken a number of measures to tame rising inflation.