“We Aren’t Police…”: RBI Chief Day After 4 Firms Banned From Giving Loans

Reserve Bank Governor Shaktikanta Das on Friday said that the central bank does not act like a policeman, but it maintains tight vigil on financial market and takes regulatory action whenever necessary.

The RBI governor’s remark came a day after the central bank directed Sachin Bansal’s Navi Finserv and three other NBFCs to cease and desist from sanctioning and disbursing loans effective from the close of business of October 21 on material supervisory concerns, including usurious pricing.

“No…we are not policemen. We are watching. We are watching very closely. We maintain vigil over the credit markets and…when it becomes necessary, we take action,” he said at the India Credit Forum hosted by Bloomberg.

Observing that this is India’s moment, Das said: “India’s growth story is intact. Inflation has now come very much within the target range. It is expected to moderate.” In fact, there are significant risks, he said, RBI is very careful in monitoring the overall outlook with regard to both growth and inflation.