09 June Friday

U.S. Banking Crisis Will Not Impact India: RBI Governor

Web Desk(Tvm)Updated: Saturday Mar 18, 2023

New Delhi : The Indian banking system is robust and the banking crisis U.S. is experiencing currently will not affect our financial sector, said Reserve Bank Manager Shaktikant Das, speaking at memorial gathering of Federal Bank founder KP Hormis.

The recent happening highlight significance of regulation and overseeing in the banking sector.  It’s also a reminder to banks to balance assets and liabilities, beside building adequate reserves to meet unexpected crisis.

Crypto currencies and assets pose a direct and indirect threat to banks. Laws must be framed to to prevent bank frauds. Though Central bank restrictions during  Covid and Ukraine war, had impacted global economy, India will emerge as one of world’s prominent economies, the Governor said.

Federal Bank Chairman C Balagopal and MD Shyam Sreenivasan were speakers on te occasion. The RBI Governor also visited the digital exhibition showcasing innovative technologies and ideas for the banking and financial sector.

The U.S. Crisis: Major lender to tech industry, the Silicon Valley Bank, collapsed with customers pulling out their monies. A week on, second US regional bank - Signature Bank - shut down, a third - First Republic Bank too appears in fray. Crisis for Credit Suisse stands averted at least for now.