RBI Governor Shaktikanta Das said on Friday that though the central bank is not a policing authority, it constantly monitors the financial markets and takes regulatory measures when necessary, as some supervisory concerns have recently come up.
Das’s comments came after the RBI asked Sachin Bansal-led Navi Finserv and three other NBFCs to stop loan sanctions and disbursements effective from the close of business on October 21 over concerns about high pricing.
“We are not policemen. We are watching with a great deal of close interest. The credit markets vigil is always on; when needed, we act,” Das said at the India Credit Forum organized by Bloomberg.
Highlighting the present economic scenario, Das said, “This is India’s moment. The country’s growth story remained robust, and the inflation finally softened to below target. While optimistic about the growth-inflation trade-off, he said the RBI continues vigilantly monitoring the overall outlook for both growth and inflation.
