The inflation elephant is taking pauses and grudgingly moving towards the forest or the 4 per cent target in an unidirectional way, he added.He asked the banks to be watchful on the lag between credit and deposit growth and advised that the former should not exceed the latter.The Governor also warned that the financial system can get exposed to “structural liquidity issues” due to the lag between the credit and deposit growth.Amid concerns about Mule accounts being used by fraudsters, Das asked banks to strengthen their customer onboarding and transaction monitoring systems to check unscrupulous activities.The RBI is working with banks and law enforcement agencies to check Mule accounts and digital frauds, he added.Das said RBI’s actions on the unsecured lending have had the desired impact and growth in the focus segment has moderated, but flagged concerns on the high ceilings on unsecured lending kept by some banks despite having high exposures already.He advised prudence to such banks and added that they should avoid exuberance.In light of his comments on Friday, which are also preceded by some actions taken by RBI against some errant entities, Das clarified that no one should assume that there is a big problem with the banking system and added that it remains very stable and healthy.The RBI is not looking at any proposal on allowing corporate entities to own or promote banks at present, Das said, adding that the issue of related party transactions is very real and having any control over them is difficult.He said India does not need a proliferation of banks, but well-governed and stable institutions, he said, adding that the on-tap facility for universal bank licenses continues to be open for those qualifying as fit and proper.
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