‘RBI is not police; It monitors the financial market and takes action when needed’- Governor

New Delhi| The Reserve Bank of India (RBI) does not act like a police, rather it keeps a close watch on the financial market and takes regulatory action whenever necessary. RBI Governor Shaktikanta Das said this at an event.

A day after the central bank directed Sachin Bansal’s Navi Finserv and three other NBFCs to stop approving and disbursing loans from the close of business on October 21, the governor made the remarks.

“No…”, Das said at the India Credit Forum organized by Bloomberg. “We are not policemen. We monitor the financial market. We are monitoring very closely. We monitor the debt markets and…When necessary, we take action.”

RBI Governor Das said that this is India’s time, India’s development story is intact. Inflation has now come well within the target range. It is expected to reduce further. He said there are indeed significant risks, and the RBI is very careful to monitor the overall outlook with respect to both growth and inflation.

On the possibility of cutting interest rates, the RBI Governor said that doing so would be very premature and very risky. Retail inflation is still very high and future monetary policy will depend on income data and market outlook. This month, the Monetary Policy Committee, after its three-day meeting, had decided to keep the policy interest rates stable. The next meeting of the Monetary Policy Committee, held every two months, will be held in December. Its decision will be announced by the Governor on 06 December.