New Delhi, Feb 23 || The Reserve Bank of India (RBI) on Monday said there is no systemic risk to the banking system and stressed that the Central Bank does not comment on individual banks or regulated entities, as IDFC First Bank revealed the Rs 590-crore fraud at its Chandigarh branch.
Addressing a joint press conference after a meeting of the RBI’s central board of directors in the national capital, RBI Governor Sanjay Malhotra said the regulator is closely monitoring the situation but there is no broader threat to financial stability.
Responding to a question on reports related to a Rs 590-crore fraud at IDFC First Bank, Malhotra said the central bank remains vigilant.
“We do not comment on any individual bank or regulated entity. We are watching the developments, and there is no systemic kind of issue over here,” he said.
The briefing was held after Finance Minister Nirmala Sitharaman met the RBI board.
The governor said India’s banking system is on strong footing, supported by comfortable capital and liquidity levels.
Banks currently have a capital adequacy ratio of around 17 per cent, which he described as robust.