(MC)
Indian banks need to carefully monitor the gap between credit and deposit growth to avoid a potential structural liquidity issue, the governor of the Reserve Bank of India (RBI) said. “Young Indians are aspirational. They get attracted to different markets. There is nothing wrong in it, it’s a natural process and a positive development,” Shaktikanta Das told.
Banks must garner more deposits through innovative products and service offerings, Governor Das said. While credit growth and disbursement has become fast paced due to technology, deposit mobilisation, done largely through physical channels, was lagging, he said.
