RBI invites entire Bank Boards to Discuss Governance and Ethics

Next month, the Reserve Bank of India will conduct an unusual conference with the entire boards of public and private sector banks, including international banks, to discuss governance and ethics related issues. The meeting, which will be held in two parts on May 22 and 29, will be addressed by RBI Governor Shaktikanta Das and other senior officials. The governor is expected to speak about governance, ethics, the role of boards in bank operations, and the RBI’s objectives for supervision.

Additionally, the RBI is reportedly developing a set of rules to govern the declaration of loan accounts as fraudulent, which will include a provision for borrowers to have a personal hearing before being designated as wilful defaulters. This move follows a recent directive from the Supreme Court for banks to consult with borrowers before designating their accounts as fraudulent.