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Reserve Bank of India (RBI) governor -- Shaktikanta Das has cautioned banks against any build-up of asset-liability mismatches, saying both are detrimental to financial stability and hinted that the ongoing crisis in the US banking system seems to have emanated from such mismatches.

Amid the continuing volatility in exchange rates, especially due to the excessive appreciation of the US dollar, and its impact on the external debt servicing ability of nations, Das said ‘We have nothing to fear as our external debt is manageable and thus appreciation of the greenback does not pose any problem to us.’

On the US baking crisis where two mid-sized banks (Silicon Valley Bank and First Republic Bank) with over $200 billion in balance sheets each went belly up last week, he said the ongoing crisis drives home the importance of robust regulations that focus on sustainable growth and not excessive build-up either on the asset side or liability side.

Das, without naming the US bank, said that on the face of it, one of them had unmanageable deposits in excess of their assets side business. Das, who has been an open critic of private digital currencies, said the ongoing US banking crisis also clearly shows the risks of private cryptocurrencies to the financial system.