New Delhi — The Reserve Bank is planning to set up an information technology wing to face the rising security challenges coming from the cyber world, Governor Raghuram Rajan said on Thursday.
“We’ve to worry about increasing issues… about cyber security, we’ve to worry about cyber supervision and with that in mind, the board suggested that we focus on an IT subsidiary which would help us develop policies as well as capabilities in the areas of IT,” Rajan told reporters here.
The RBI board has also discussed making “legislative changes needed to take the financial sector forward” such as relaxing certain rules in derivatives trading, Rajan said. Commenting on the government’s Budget decision to carve out its debt management function away from the RBI, the RBI chief said the central bank was not against the idea and was in consultation with the government on how this could be done.
India’s banking system may not yet have seen the peak in bad loans, the Reserve Bank of India Governor Raghuram Rajan said on Thursday, adding the central bank was working with lenders to recognise and resolve these non-performing assets.
The ratio of bad loans at Indian banks has doubled over the past three years on the back of an economic slowdown – a worry for a country that is hoping to spur a revival in credit to key sectors such as infrastructure. That has prevented banks from lending more, despite two interest rate cuts by the RBI this year totalling half a percentage point.
Banks that have so far released quarterly results for the January-March quarter have reported a mixed trend in bad loans.
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