Mumbai, RBI Governor Shaktikanta Das on Wednesday asked banks to further strengthen governance standards, risk management practices and compliance culture.
As part of the Reserve Bank's continued engagement with the senior management of its regulated entities, Das held meetings with managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks.
In his opening remarks, the Governor noted the continuous improvement in banks' asset quality, credit provision, capital adequacy and profitability, the RBI said in a statement.
"Recognizing the high resilience and strength of the banking sector, he highlighted the importance of further strengthening governance standards, risk management practices and compliance culture in banks," Das said.
Persistent gap between loan and deposit growth; Liquidity risk management and ALM-related issues; And trends in unsecured retail loans were among the issues discussed in detail.
Das also stressed the need for banks to ensure strong cyber security controls and manage third party risks effectively.
He urged them to intensify efforts against 'mule accounts' and intensify customer awareness and education initiatives, among other measures, to curb digital fraud, the statement said.
Cybersecurity, third party risks and digital fraud; strengthening of assurance functions; credit flow to MSMEs; Increasing use of Indian rupee for cross border transactions; And participation of banks in innovation initiatives of the Reserve Bank was also discussed in detail.
The meetings were also attended by Deputy Governors M Rajeswara Rao and Swaminathan J as well as the executive director in charge of regulation and supervision functions.
The last such meetings were held on February 14, 2024.
As part of the Reserve Bank's continued engagement with the senior management of its regulated entities, Das held meetings with managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks.
In his opening remarks, the Governor noted the continuous improvement in banks' asset quality, credit provision, capital adequacy and profitability, the RBI said in a statement.
"Recognizing the high resilience and strength of the banking sector, he highlighted the importance of further strengthening governance standards, risk management practices and compliance culture in banks," Das said.
Persistent gap between loan and deposit growth; Liquidity risk management and ALM-related issues; And trends in unsecured retail loans were among the issues discussed in detail.
Das also stressed the need for banks to ensure strong cyber security controls and manage third party risks effectively.
He urged them to intensify efforts against 'mule accounts' and intensify customer awareness and education initiatives, among other measures, to curb digital fraud, the statement said.
Cybersecurity, third party risks and digital fraud; strengthening of assurance functions; credit flow to MSMEs; Increasing use of Indian rupee for cross border transactions; And participation of banks in innovation initiatives of the Reserve Bank was also discussed in detail.
The meetings were also attended by Deputy Governors M Rajeswara Rao and Swaminathan J as well as the executive director in charge of regulation and supervision functions.
The last such meetings were held on February 14, 2024.
