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Reserve Bank of India Governor Shaktikanta Das on Wednesday said the recent tightening of norms on unsecured lending is a preemptive and targeted move in the interest of sustainability.

Addressing the annual FIBAC event here, he said the RBI excluded certain sections like loans for house and vehicle purchase, and also the ones availed by small businesses, because of the advantage on the growth front they have.

The Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association (IBA) are jointly organising the FIBAC event.

“We have also recently announced a few macroprudential measures in the overall interest of sustainability. These measures are preemptive in nature. They are calibrated and targeted,” Das said.

Das said he does not see new stress building up in the banking system currently, but wants lenders to continue with stress testing.

He said some non-bank finance companies-microfinance institutions (NBFC-MFIs) are reporting higher interest margins and asked them to use the flexibility in setting rates by the RBI “judiciously”.

Meanwhile, even as the headline inflation is showing signs of cooling, Das said RBI is completely focused on price rise.

The Indian rupee has exhibited “low volatility and orderly movements” despite the elevated US treasury yields, Das said in the comments that come amid some depreciation in the local currency to newer lows.

He also pitched for reforms in agricultural marketing and connected value chains for sustained high growth, durable price stability and mitigating price shocks.