RBI governor advises banks to prioritise governance

The RBI governor, Shaktikanta Das, has urged banks to tighten up on governance standards and pay close attention to the compliance, risk management, and auditing processes. He also requested that bank executives follow the central bank’s rules regarding the tying of consumer loans to an outside benchmark. On Tuesday, Das spoke with managing directors and chief executive officers from major public and private sector banks.

The governor praised India’s banking system for its robust performance amidst difficult global conditions. But he emphasized how crucial it was to exercise caution and vigilance in such circumstances. The rising share of unsecured loans has already caused the central bank to express worry. He brought attention to the necessity of protecting banks against asset-liability mismatches. Rajeshwar Rao, Swaminathan J., and other deputy governors were present during the meeting.