RBI Governor Advises Banks To Remain Watchful Of Evolving Macroeconomic Situation The governor said that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters

The Reserve Bank of India (RBI) governor Shaktikanta Das, on Wednesday, held a meeting with the MD and CEOs of public sector banks and certain private sector banks and told them to be watchful of the evolving macroeconomic situation, including spillovers amid fears of recession and global economic slowdown.

Besides MD and CEOs of public sector banks and certain private sector banks, the meeting was also attended by deputy governor M. K. Jain along with a few senior officials of the RBI, the central bank said in a statement.

Acknowledging the crucial role played by the commercial banks in supporting economic growth throughout the turbulent times since the outbreak of the pandemic and the ongoing financial market turmoil, the governor said that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters.

Das, however, advised the banks to remain watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively so that the potential impact on their balance sheets is minimised and financial stability risks are contained, the RBI said in a statement.

Last month, SBI Chairman Dinesh Khara in a news report was quoted as saying; India is an inward-looking economy in terms of demand because a significant component of the GDP is essentially addressed to the domestic economy. So, from that point of view, he said the global recession will have an impact but it won't be as pronounced.