RBI aks banks to strengthen governance

RBI governor Shaktikanta Das asked banks to further strengthen the governance standards, risk management practices and compliance culture.

As part of the Reserve Bank’s continuous engagement with the senior management of its regulated entities, Das held meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks.

The governor in his opening remarks noted the continued improvement in banks’ asset quality, loan provisioning, capital adequacy, and profitability, the RBI said in a statement.

“While acknowledging the higher resilience and strength of the banking sector, he highlighted the importance of further strengthening the governance standards, risk management practices and compliance culture in banks,” Das said.