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| Edited By: |Source: PTI |Updated: Mar 16, 2018, 06:53 AM IST
The ripple effects of the financial crisis in Dubai will be felt in India, but the impact may not be as acute as Indian banks do not have much exposure in the region, RBI deputy governor KC Chakrabarty said today.
However, the extent of repercussions on India will be clear only after more details emerge.
"We do not know the exact depth of the situation and what will happen next," Chakrabarty told reporters on the sidelines of a function here when asked if the Dubai financial crisis would impact the Indian economy.
On banking consolidation, he said, the time was not ripe and financial inclusion was more important now.
In a country where 50% people do not have bank accounts and 15% no access to credit, financial inclusion is more important than consolidation at this juncture, Chakrabarty said.
Banks have to increase their customer base and reach out to the masses, he said.
"I am not against consolidation as such as it reduces cost and helps in achieving size and reduces cost. For us at this moment financial inclusion is more important than consolidation," he said.
On Kerala's proposal to set up financial institutions based on principle of 'Islamic banks' to attract deposits from Non Resident Keralites, he said 'We are not against Islamic banks but as such our rules don't permit this in the fullest sense."
