RBI's Watchful Guard: A Closer Look at Financial Vigilance

RBI Governor Shaktikanta Das emphasized that the Reserve Bank acts not as an enforcer but as a vigilant overseer of India's financial market, ready to take regulatory actions when necessary. Recently, the RBI halted loans by Navi Finserv and other NBFCs over concerns such as high loan pricing.

Reserve Bank of India Governor Shaktikanta Das clarified on Friday that the central bank functions not as a police force, but as a vigilant authority closely observing the financial markets. He spoke at the Bloomberg-hosted India Credit Forum, stressing the RBI's regulatory role.

His statement followed the RBI's order to Navi Finserv, owned by Sachin Bansal, and three other non-banking financial companies (NBFCs), instructing them to pause loan approvals and disbursements from October 21 due to supervisory concerns like unfair loan pricing.

Das assured that India's growth remains robust and inflation has eased within target levels. Nevertheless, he highlighted ongoing vigilance regarding growth and inflation risks, indicating that the central bank remains alert to ensure financial stability.

(With inputs from agencies.)