RBI Governor Shaktikanta Das will hold a meeting with the public banks to review credit sustainability growth. According to the Times of India, a report provided to bankers may consider slowing deposit growth due to increased lending.
Credit growth in India hit an all-time high, largely driven by pent-up demand. The Reserve Bank of India is raising interest rates to keep inflation at bay in the economy. Deposits grew only 9.5% compared to 18% for credit growth. Selling RBI dollars to stabilize the rupee exchange rate will also put pressure on system liquidity.
The Shaktikanta Das Governor of RBI has so far raised the repo rate by 190 basis points and may increase it further at its next meeting in December.
The RBI governor Shaktikanta Das is expected to discuss the functions of the digital banking divisions set up in the 75 districts to fuel the bank’s technological innovation, with the head of the state-owned bank.
The RBI may review the digital readiness of the banking sector prior to the introduction of central bank digital currencies. It has already launched a wholesale digital currency pilot and is expected to launch a retail pilot soon.
