RBI asks banks, NBFCs to raise provisioning, capital

NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said banks and non-banking financial companies (NBFCs) need to strengthen their capital position as there could be stress due to the second wave of COVID-19.

Das also said he was confident that the non-performing loans of banks will be within the projections made in its Financial Stability Report (FSR) in January this year.

"Banks and NBFCS need to augment their capital because there could be stress arising out of the second wave," Das told reporters post the monetary policy announcement.

He, however, added that in response to the RBI's call and based on their own assessment, private and public sector banks raised capital from the market throughout last year and so their overall capital position is at a very stable level currently. ‘Major concerns persist on cryptocurrencies’ MUMBAI: RBI Governor Shaktikanta Das on Friday made it clear that the central bank's view on cr yptocurrencies like Bitcoin remains unchanged and it continues to have "major concerns" on the volatile instruments.

"There is no change in RBI's position (on cr yptocurrencies). Our circular clarifies the position ver y well," Das told reporters in the customary postpolicy press conference, when asked if there has been a change in its view.

The RBI had first come out with a circular on the issue in 2018, cautioning people about investing in cr yptocurrencies, which do not have any sovereign character.