Banks can't rely on RBI money 'perennially' for credit demand: Governor Das

Slow deposit growth may create funding challenging for lenders in the festival season

Banks cannot always rely on the central bank's money and they must mobilise deposits to fund credit offtake in the economy, said RBI governor Shaktikanta Das on Friday.

His statement comes as the gap between credit and deposit growth is widening. There are concerns that the sub 9 per cent growth in deposit may pose funding challenges for lenders as they enter the festival season, when there is high credit demand.

According to Reserve Bank of India (RBI) data, credit growth in the system was 14 per cent during the fortnight ending July 15. Deposit growth was just 8.4 per