RBI Monetary Policy Update: Enhancing Financial Stability for Banks and NBFCs
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Introduction
In his statement on the Monetary Policy, the RBI Governor highlighted that banks and NBFCs continue to exhibit financial stability, by way of strong liquidity positions, capital adequacy, and sustained profitability. NBFCs have shown improvement with better asset quality and declining GNPA ratios. Against this backdrop, the RBI today maintained a cautious yet forward-looking stance, keeping policy rates unchanged while focusing on strengthening financial stability, enhancing risk management, and reinforcing consumer protection through regulatory measures affecting banks and NBFCs.Some of the policy changes introduced by the RBI, which are expected to impact financial entities such as banks and NBFCs, are as follows:
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