Indusind is an episode, not a failure, a safe banking system: RBI ruler

Sanjay Malhotra, the governor of the Indian Reserve Bank, reassured the public that the banking system in India is still “safe and safe.” He stressed that the recent accounting lapses at Indusind Bank and the restrictions that were placed on a new cooperative bank in India should be seen as “isolated” rings instead of regular failures.

During the media briefing after the MPC meeting, Malhotra dealt with concerns about accidents, noting that with thousands of non -banking financial companies (NBFCS) and cooperative banks operating in India, it is expected that there will be accidental challenges. He stressed that these incidents should not be seen as failures, because they are part of the normal process of the banking sector. Malhotra emphasized that despite these challenges, the Indian banking system is still “safe, endless and strong” in general.

“This is not a failure,” Malhotra said. “These things will happen … The Indian banking system is still safe, secure and strong at the system level,” Malhotra said.

Indusind Bank revealed an accounting variation of 1577 rupees in its derivative portfolio in March. Despite the increase in the bank’s scrutiny, RBI emphasized that isolated accidents such as these should not detract from the total flexibility of the banking system in India.