Depositors should be careful while chasing high returns, says RBI Governor Das


PTI, Dec 12, 2021, 5:28 PM IST

New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Sunday cautioned depositors to be careful while chasing high returns as it comes with greater risk.

Observing that depositors themselves also need to be very discerning, he said it is important to keep in mind that higher returns or higher interest rates are usually associated with higher risks.

”So, just because a bank is offering higher interest, the depositors themselves should be very careful before putting in money while chasing such high returns because usually, our experience is that high returns or high interest rates are associated with higher risks,” he said.

However, he said there are institutions that are offering higher interest and are still viable but depositors should always be very careful.

Speaking at the ‘Depositors First’ event here, Das said the Reserve Bank remains committed to ensuring that the banking system remains robust and resilient but it has to be a joint effort.

”Every stakeholder whether it is the management of banks, whether it is the board of banks, whether it is the various committees of banks, the audit committee, the risk management committee, or any other regulatory authority that is associated, it has to be a joint responsibility for all of us,” he said.

Das stressed that the payment of the deposit insurance amount should be seen as a measure of last resort. ”The RBI has been adopting a proactive strategy to strengthen the regulatory guidelines to strengthen the supervisory methods and to look at things which will ensure that going forward the banks function in a very resilient manner.” Recalling his statement in the recent monetary policy statement, Das said, ”I had said that the country has demonstrated working together during this entire pandemic and India’s moment has come where India can become a growth driver for the world economy.” It will be possible if all stakeholders in the banking system work together, he added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Chikkaballapur: Yoga teacher feigns death by holding her breath, escapes murder bid

World Bunts Summit to be held in Mumbai on December 7

Related Articles More

Sensex, Nifty fall for 2nd day on FII selling; RIL, ICICI Bank major drag

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

Sensex, Nifty surge over 1 pc on heavy buying in IT stocks as Trump set to win US polls

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

24/7 CT Scan Facility Inaugurated at Dr. TMA Pai Rotary Hospital, Karkala

Bengaluru Police Eye Care Project inaugurated

50-60% cancer cases detected in India annually are preventable, say oncologists

Finance Minister reviews progress of planetarium in Mysuru

Bank fraud: ED seizes jewellery, cash worth over Rs 1 cr in raids against Bhopal-based company, directors

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.