According to a note shared with bankers, the issue of slow deposit growth may be raised amid rising credit offtake, reports the Times of India.
Credit growth in India has touched record highs mainly due to slowdown in demand. RBI has been raising interest rates to control inflation in the economy.
Against credit growth of 18%, deposits have grown by only 9.5%. The selling of dollars by RBI to stabilize the rupee exchange rate will also put pressure on systemic liquidity.
So far, RBI has extended repo rate By 190 basis points and may increase it further in the next policy meeting in December.
The RBI governor may take up the issue of functioning of digital banking units with heads of state-run banks, which were set up in 75 districts to promote technology innovation in banking.
RBI may review banking sector’s digital preparedness status before starting central bank digital currency (retail). It has already started piloting a wholesale digital currency and is expected to launch a pilot of a retail currency soon.