US banking crisis shows importance of robust regulators, risks of cryptocurrencies: RBI guv Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das today said that the ongoing banking crisis in the United States has once against underlineed the importance of robust regulators. Das also said that it clearly shows risks of private cryptocurrencies to the financial system

Addressing 17th K P Hormis Commemorative Lecture, Das said said that the developments again highlighted the need for prudent asset-liability management, regular stress tests and building up capital buffers.

"At the height of pandemic, we kept on highlighting on the need to build up adequate capital. I m happy to say that almost all the indian banks took the message and kept additional capital," Shaktikanta Das said.

He said that the biggest monetary dillema in today's time is to tame inflation while minimising a hard landing of the economy.

Das also said that the worst of inflation is behind us, hinting at pausing the rate hike cycle.

In the current round of monetary tightening, RBI has raised the policy repo rate from 4% in May last year to 6.5% now. However, economists are now expecting a quarter-percentage-point rate increase in the April 3-6 Monetary Policy Committee meeting.

Addressing 17th K P Hormis Commemorative Lecture, Das said the biggest monetary dillema in today's time is to tame inflation while minimising a hard landing of the economy.

He also said that India does not have a debt distress.

Citing IMF, he said that 15 per cent of low income countries are in debt disterss while additional 45 per cent in high risk of debt distress. "25 per cent of Emerging countries are also in high risk of debt distress, Das said. The RBI governor said that while tightening monetary policy has led to reserve losses but India sits comfortably with "5th highest reserve in the world".