<p>According to the agenda shared with banks for the meeting to be attended by RBI governor&nbsp;<strong>Shaktikanta Das</strong>, the central bank has sought their views on the sustainability of credit growth and whether there are any risks arising out of the high credit growth and the relatively slower growth in deposits. It has also sought their views on the impact of the increase in interest rates.</p>
<div style="page-break-before: always; page-break-after: always;">
<p id="5">While banks have cleaned up their books and bad loans are at a multi-year low, the RBI has sought to understand whether there is any stress building up in retail, including loans to small business. On the issue of technology, the RBI has sought feedback on the working of the 75 digital banking units that were launched by the Prime Minister in 75 districts across the country. It has also sought a progress report from banks on the upgrading of their technology platforms.</p>
</div>
<div style="page-break-before: always; page-break-after: always;">
<p id="3">This year, credit growth has been racing ahead of deposit growth. As against an 18% growth in credit, deposits have grown by only 9.5%. The growing wedge between credit and deposit growth has raised concerns over liquidity pressure in coming months. The RBI&rsquo;s sale of dollars in the foreign exchange market to support the rupee has also been draining liquidity.</p>
</div>
<div style="page-break-before: always; page-break-after: always;">
<p id="2">The RBI has hiked interest rates by 190 basis points (100bps = 1 percentage point) since May and is likely to continue with its rate hike to keep pace with global central banks led by the Federal Reserve. Interest rates are already higher than pre-Covid levels. However, the demand for credit has not tapered.</p>
</div>

Das to meet bank chiefs on slow deposit growth

English

Spanish(español)

Bengali(বাঙালি)

Gujarati(ગુજરાતી)

Hindi(हिन्दी)

Malayalam(മലയാളം)

Tamil(தமிழ்)

Telugu(తెలుగు)

Download your favorite titles and read them offline, anytime and anywhere

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines and newspapers from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from {{magCount}}+ best-selling international titles.

Name

Please fill out this form if you need any help regarding publishing your content on Magzter

Since we launched, Magzter has been committed to partnering with global organizations to provide the greatest possible newsstand technology & service to our customers. Whether you are looking to offer magazine subscriptions to your customer database or just want to learn more, Magzter is committed to helping your business grow. To find out more, please fill out the questionnaire below: