Observing that depositors themselves must also exercise good judgment, he said it’s important to keep in mind that higher yields or higher interest rates are usually associated with higher risks.
“So just because a bank offers higher interest, the depositors themselves have to be very careful before putting in any money while pursuing such high returns because generally our experience is that high returns or High interest rates are associated with higher risks, ”he said. .
However, he said that there are institutions that offer 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 that it must be a joint effort.
“Everyone involved, whether it is the bank management, whether it is the board of directors of the banks, whether it is the various bank committees, the audit committee, the risk management committee, or any other regulatory authority associated with it, it must be a common 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 adopted a proactive strategy to strengthen regulatory guidance to strengthen supervisory methods and to look at things that will ensure that banks operate very resiliently in the future.”
Recalling his statement in the recent monetary policy statement, Das said: “I had said the country has demonstrated that it is working together during this entire pandemic and the time has come for India where India can become a engine of growth for the global economy “.
This will be possible if all players in the banking system work together, he added.