RBI Governor Urges Banks to Strengthen Governance and Cybersecurity Measures
RBI Governor Shaktikanta Das has urged banks to bolster governance standards, risk management, and compliance culture. In meetings with MDs and CEOs of public and private banks, key issues like credit and deposit growth, liquidity risks, and cybersecurity were discussed. Emphasis was placed on curbing digital frauds and enhancing customer awareness.
- Country:
- India
On Wednesday, RBI Governor Shaktikanta Das called on banks to further fortify their governance standards, risk management practices, and adherence to compliance cultures.
In a series of meetings involving the managing directors (MDs) and chief executive officers (CEOs) of public sector and select private banks, part of the Reserve Bank's continuous engagement with senior bank management, Das underscored the importance of these measures.
'While acknowledging the enhanced resilience and strength of the banking sector, the need for even stronger governance standards and robust cybersecurity measures was stressed,' Das noted, according to an RBI statement.
Notable topics included the persisting gap between credit and deposit growth, liquidity risk management, issues related to asset-liability management, and trends in unsecured retail lending.
Das also emphasized the necessity for robust cybersecurity controls, effective management of third-party risks, and improved measures against 'mule accounts' to mitigate digital fraud.
The meeting further explored the strengthening of assurance functions, credit flows to MSMEs, increasing the usage of the Indian Rupee in cross-border transactions, and banks' roles in innovation initiatives launched by the RBI.
Deputy Governors M Rajeshwar Rao and Swaminathan J, along with executive directors overseeing regulation and supervision functions, were also present at the discussions.
This series of meetings follows the last one conducted on February 14, 2024.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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