The Reserve Bank of India (RBI) on Thursday in Financial Stability Report, said that though the Indian financial system remains robust, risks to financial stability have increased in the recent past due to the dismal global macroeconomic situation and the muted economic growth on the domestic front.
“Risks to financial stability have worsened since December 2011, primarily due to the global risks and domestic macroeconomic conditions,” said the bank.
Global sovereign debt problems and risk aversion, domestic fiscal position, widening current account deficit and structural aspect of food inflation pose threat to stability, the report said."The downside risks to the global macroeconomic environment are expected to intensify further in the coming months, owing to political uncertainty in the euro area, the persistence of global imbalances, fiscal stress and sluggish growth prospects," it said, adding the contagion of euro zone is spreading to other advanced and emerging economies.
The report said slowdown in the domestic economy, upside risks to inflation, high fiscal deficit among others remained areas of concern.
Promote electronic transactions for safety
Mumbai: The Reserve Bank of India (RBI) has released Payments System Vision Document 2012-15 on Thursday that proposed to promote electronic transactions towards a “less-cash” economy, with an intention to make payment and settlement in the country safer.
In the document the RBI said, “the document envisages by ways and means of ensuring payment and settlement systems in the country are safe, efficient, interoperable, authorised, accessible, inclusive and compliant with international standards.”
The regulation would aim at channelising innovation and competition to meet the demands consistent with international standards and best practices, as the payment systems will be driven by customer demands of convenience and ease of use to access, the RBI document said.
Earlier, the RBI had published a vision document regarding the course of action that would be undertaken in the field of payment and settlement systems within next three years.