Growth is important, but not at cost of unacceptable risks: RBI governor

Reserve Bank of India (RBI) Governor Shaktikanta Das stressed the importance of balanced growth for banks and non-banking financial companies (NBFCs) at the Global Conference on Financial Resilience. \r

He cautioned against pursuing business growth at the cost of accepting unacceptable risks, advocating instead for robust risk mitigation frameworks. Das highlighted the significance of ethical governance and sustainable business practices, emphasizing compliance with laws and regulations.\r

Strong governance, according to Das, underpins resilience in the financial sector, ensuring informed decision-making aligned with long-term goals. He also addressed the RBI's proactive approach in assessing and mitigating vulnerabilities in bank and NBFC business models, including timely regulatory actions to manage risks associated with credit growth and third-party vendor dependencies.