RBI DG cautions against 'reckless financialisation'

MUMBAI: Reserve Bank of India deputy governor M Rajeshwar Rao on Friday cautioned that while digital transformation is revolutionising the financial sector, it must be managed prudently to avoid systemic risks through "reckless financialisation". "Of late, we have seen some concerns of excessive borrowing in the unsecured segment and from derivative euphoria in the capital markets. The temptation of short-term gains can easily overshadow the long-term financial security of individuals," he said at the IIMK-NSE conference.

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