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Won't like banking system to be in a situation of loose money: RBI Governor

RBI will take steps if there's liquidity shortage, said Shaktikanta Das

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In his first media interaction, Shaktikanta Das stressed the need for free, fair and objective discussions between govt and RBI. Photo: Kamlesh D Pednekar

Agencies BS Web Team New Delhi

Last Updated : Jan 07 2019 | 1:53 PM IST

The Reserve Bank of India (RBI) will not like the banking system to be in a situation of "loose money", Governor Shaktikanta Das said on Monday after a meeting with representatives of small- and medium-sized businesses.

The RBI is also looking at new governance reforms for state-owned banks but will not "throttle" their functioning, Das told reporters.

ALSO READ: To bridge fiscal deficit, RBI likely to pay govt $5.8 bn interim dividend

Highlights of what the RBI governor said:

— As and when a decision on interim dividend is taken, RBI will announce it.

— State of NPAs and health of public sector banks a major focus currently

— Have met private and PSU bankers on liquidity issue; RBI has announced extra Rs 10,000 cr of open market operations

— Some issues faced by MSMEs come in RBI's domain but most of them are under the govt