INSUBCONTINENT EXCLUSIVE:
Assuring the crisis-hit NBFC sector will be monitored, Reserve Bank of India Governor Shaktikanta Das on Monday said the central bank will
not hesitate to take any required measure to maintain the financial stability of the economy.In a lecture at the Lal Bahadur Shastri
National Academy of Administration, Mussoorie, on the "evolving role of central banks", Mr Das also said that financial stability is major
factor considered in the RBI's monetary policy."In the non-banking sector, the Reserve Bank has recently come out with draft guidelines
for a robust liquidity framework for the NBFCs
We are also giving a fresh look at their regulatory and supervisory framework
It is our endeavour to have an optimal level of regulation and supervision so that the NBFC sector is financially resilient and robust," he
said."The Reserve Bank will continue to monitor the activity and performance of this sector with a focus on major entities and their
inter-linkages with other sectors
The Reserve Bank will not hesitate to take any required steps to maintain financial stability," he added.The liquidity crisis in the
non-banking financial companies (NBFCs) came to light when IL-FS defaulted on a commercial paper in September.Mr Das further said that in a
financial crisis, it has been recognised that price stability may not be sufficient for financial stability and therefore financial
stability has emerged as another key consideration for monetary policy, though jury is still out as to whether it should be added as an
underlying theme has always been financial stability," the Governor said.
