The RBI has said the exposure of the domestic banking sector to the Adani group is not very significant, and its resilience will not be affected by an individual incident.

Replying to a query on Adani, deputy-governor M.K. Jain said the exposures of banks were not very significant. The exposures against shares are also “insignificant”.

“Our domestic banks’ exposure is against the underlying assets, the operating cash flows and the projects under implementation. And not based on market capitalisation,” Jain said.

RBI governor Shaktikanta Das said the central bank has taken a number of steps to strengthen the resilience of domestic banks.

“We have issued guidelines about the functioning of the audit and risk management committee. The RBI has now made it mandatory for the appointment of chief risk officer in banks. We have also made it mandatory for appointment of chief compliance officer’’, he said. Both these officers have been given the desired level of autonomy, the RBI governor added.

The RBI has rationalised the large exposure norms which cap exposures to a single company or a group.

“Based on our assessment, the large exposure guideline of the RBI are fully complied (as regards their exposure to the group) by all the banks. The strength, size (of the Indian banking system) and the resilience is much larger and much stronger to be affected by an individual incident or a case like this,” Das said.