Since the depositors themselves have to be very demanding, it should be noted that higher returns or higher interest rates are usually associated with higher risks.

“Just because a bank offers higher interest rates, depositors themselves should be very careful before investing money while looking for such high returns, because usually high returns or high interest rates are associated with higher risks,” he said.

However, he said there are institutions that offer higher rates and are still viable, but depositors should always be very careful.

Speaking at the Depositors First event, Das said the Reserve Bank will continue to work to ensure that the banking system remains resilient and resilient, but it must be a joint effort.

“Every stakeholder, be it the management of banks, whether it is the board of directors of the banks, whether it is the various committees of the banks, the audit committee, the risk management committee or any other affiliated supervisory authority, must have a shared responsibility for all of us “, he said.

The stressed that the payment of the deposit guarantee should be seen as a last resort. “RBI has pursued a proactive strategy to strengthen the regulatory guidelines, strengthen the supervisory methods and examine things that ensure that the banks will function very resiliently in the future.”

That was reminiscent of what he said in the recent monetary policy statement, saying, “I had said the country had worked together throughout this pandemic and India’s moment had come when India could become a growth engine for the world economy.”

This is possible if all actors in the banking system work together, he added.