RBI governor asks banks to focus on governance

RBI governor Shaktikanta Das has asked banks to strengthen governance standards and to pay special attention to compliance, risk management and audit functions. In a meeting with bank chiefs, he also asked them to ensure that they adhere to the central bank’s guidelines on linking retail loans to an external benchmark. Das met with managing directors and chief executive officers of public sector banks and large private banks.

The governor acknowledged the performance of the Indian banking system despite challenging global circumstances. However, he emphasised the importance of remaining cautious and vigilant during such times. In the past, the central bank had raised concerns over the growing level of unsecured loans . It had highlighted the need to ensure that banks do not run into asset liability mismatches.