RBI Governor Urges Banks to Move Beyond “Mindless Pursuit of Profit”

[Keywords: RBI, Governor, Banks, Profit, Financial Inclusion, Social Responsibility, Sustainable Growth]

In a stern message to India’s banking sector, Reserve Bank of India (RBI) Governor Shaktikanta Das has called for a shift away from the “mindless pursuit of profit.” Speaking at a recent banking event, Das emphasized the need for banks to prioritize financial inclusion and social responsibility alongside profit maximization.

“While profitability is important, it cannot be the sole objective,” Das stated. “Banks must play a crucial role in driving inclusive growth, supporting small and medium enterprises, and promoting financial literacy.” He urged banks to focus on expanding access to credit, particularly for underserved segments like farmers, small businesses, and women.

Das also highlighted the need for sustainable growth, emphasizing that banks should incorporate environmental and social considerations into their business practices. He cautioned against practices that could jeopardize the long-term health of the financial system and the economy.

This strong message from the RBI Governor comes at a time when the banking sector is facing increasing scrutiny over its social impact. His call for a more responsible approach is expected to encourage banks to re-evaluate their priorities and adopt a more balanced approach that balances profit with social responsibility and sustainable growth.