RBI Governor Shaktikanta Das says RBI is closely monitoring the financial market and will take action if necessary

File photo of RBI Governor Shaktikanta Das. | Photo credit: PTI

Reserve Bank Governor Shaktikanta Das said on Friday (Oct 18, 2024) that the central bank is not acting like a police officer but is keeping a close eye on the financial markets and taking regulatory action when necessary.

The RBI Governor’s comment came a day after the central bank directed Sachin Bansal’s Navi Finserv and three other NBFCs to stop sanctioning and disbursing loans from the end of business day October 21 due to material supervisory issues including extortionate prices.

“No… we are not police officers. We are watching it. We are watching it closely. We are watching the credit markets and… if necessary, we will take action,” he said at the India Credit Forum, organized by Bloomberg.

Noting that this is the moment for India, Mr Das said, “India’s growth story is intact. Inflation is now well within the target range. It is expected to moderate.” In fact, there are significant risks, he said. RBI is very cautious in monitoring the overall outlook for both growth and inflation.