scorecardresearch
Tuesday, March 26, 2024
Support Our Journalism
HomeBusinessRBI deputy governor M Rajeshwar Rao urges banks to address shortcomings in...

RBI deputy governor M Rajeshwar Rao urges banks to address shortcomings in governance framework

RBI governor Shaktikanta Das requested the banks to strengthen governance to reduce financial instability following the collapse of several banks in the US.

Follow Us :
Text Size:

Mumbai: The boards of Indian banks should address gaps in governance frameworks, including ensuring appropriate risk management practices and adhering to acceptable customer and market conduct, a deputy governor of the Reserve Bank of India (RBI) said in a speech in May.

Boards should set clear expectations for management and should require reports on risk management on a regular basis, said M Rajeshwar Rao, at a conference of directors of state-run and private banks in May.

The speech was uploaded to the central bank’s website on Monday.

RBI Governor Shaktikanta Das and deputy Governor M.K. Jain also urged banks, in the same conference, to ensure compliance and effective governance.

The RBI has been increasingly encouraging banks to strengthen governance standards to avoid financial instability, following a series of bank failures in the US.

“Boards should ensure that management is transparent about the banks’ financial performance/statements and risk management practices so that trust with stakeholders is built and investors are able to assess the various risks associated with a bank,” Rao said. Reuters

(Reporting by Siddhi Nayak; Editing by Janane Venkatraman)


Also read: India’s services growth defies inflation pressures but falls to 61.2 in May from 62 in April


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular