In order to achieve the ambitious economic growth target of the country, the financial assets and bank assets would need to achieve a consistent and high paced growth over the next two decades, which would require a corresponding increase in liabilities and capital for the financial sector, said a top RBI executive.
This brings forth the need to address some of the emerging challenges as customer behaviour and preferences are undergoing profound changes while global ecosystems and external factors such as third-party dependencies and technology shifts are growing increasingly complex, reshaping the business landscape, said deputy governor Rajeshwar Rao at an event.
Collectively, these dynamics are creating a challenging environment for REs who would need to recalibrate their approach and business strategies, Rao said.
This is not just about managing risks but also seizing opportunities to optimize funding structures, enhance stability, and support economic growth, the deputy governor added.
The road to a “Viksit Bharat” by 2047 will depend significantly on how well the financial system adapts to these trends and manages the complexities of resource raising and liability management.