US banking crisis highlights the risks of private crypto, says RBI governor

The current financial crisis in the US clearly demonstrates the dangers that private cryptocurrencies pose to the financial system, according to RBI Governor Shaktikanta Das on Friday.

Shaktikanta Das, governor of the Reserve Bank of India, stated on Friday that the Indian financial system is robust and resilient despite the crisis affecting American banks. Das stated that the crisis facing US banks highlights the necessity for "prudent asset liability management" at the 17th K P Hormis Memorial Lecture in Kochi.
Before investing in bonds, banks should properly examine their risks, according to Das, who brought up the failure of Silicon Valley Bank.

He claimed that India's overall external debt is under control. Das added that the RBI has been actively interacting with banks and has urged them to implement strong risk management procedures, carry out regular stress tests, and create adequate capital buffers.
The governor's speech was largely focused on India's G20 presidency, and in this context, he advocated for more concerted efforts by the group of the world's 20 largest economies to aid those nations that face substantial external debt concerns as a result of the strengthening US currency.

Fears of a widespread banking crisis in the United States and Europe have caused bank stocks to drop globally. "We have a stable financial system. We've passed the peak of inflation. As we can control our external debt, the rising dollar is not a problem for us "Das stated. The RBI Governor urged the G20 to work together to support nations that face significant risks from their external debt because of the strengthening currency.