The Reserve Bank of India (RBI) is more concerned about the depositors interes
The Reserve Bank of India (RBI) is more concerned about the depositors interest and preserving financial stability than giving doles to the industry, governor Shaktikanta Das indicated to industry captains on Wednesday.
“The primary concern in the banking system is the protection of depositors’ money. Ultimately, it is the depositors’ money that is being lent out,” governor Das said in an interaction with the governing council of the industry lobby group Federation of Indian Chambers of Commerce & Industry (FICCI).
“Depositors run into crores in numbers, whereas borrowers could be in lakhs. There are small depositors, middle class depositors, there are retired people who depend on bank deposits. So, the interests of depositors have to be protected. Also, the aspect of financial stability of the banking sector needs to be also kept in mind,” governor Das said responding to various demands by industrialists.
Banks have an important role to spur economic development in an emerging markets economy like…