RBI governor: Nothing to panic about banking system

Shaktikanta Das. Pic /AFP

Allaying fears of any threat to the banking system, Reserve Bank governor Shaktikanta Das on Friday asked the public not to panic as the entire banking system, including cooperative ones, continue to remain sound and stable. Das also said in the wake of the crisis at Punjab & Maharashtra Cooperative (PMC) Bank, the RBI is reviewing the existing regulatory framework for cooperative banks and will discuss the matter with the government.

The statement assumes importance as PMC is the 24th cooperative bank to be placed under RBI administrators in 2019 and there are many regulatory and administrative gaps in the system as the states have a big say in their matters. Also, there is political interference in their functioning. "So far as the RBI is concerned, I would like to make it very clear that our banking sector remains sound and stable and there is no reason for any unnecessary panic," Das told reporters at the customary post-policy presser. He said sometimes unnecessary rumours can create panic and urged the public to not to pay attention to them.

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