“Banks need to remain extra careful and vigilant, focus on governance”: RBI Governor

Mumbai (Maharashtra) [India], July 11 : Reserve Bank Governor Shaktikanta Das on Tuesday said that banks need to be extra careful and vigilant and asked them to focus on their governance.

The governor held meetings with the MDs and CEOs of public sector banks and select private sector banks here.

“Das in his introductory remarks, while noting the good performance of the Indian banking system despite various adverse global developments, stressed that it is in times like these, banks need to be extra careful and vigilant,” the RBI said in a statement.

The RBI further said that the Governor also emphasised the need for MD and CEOs to pay special attention to strengthening the governance in the banks and focus on the tripod of banking stability consisting of compliance, risk management and audit functions.

The issues relating to strengthening credit underwriting standards, monitoring of large exposures, implementation of External Benchmark Linked Rate (EBLR) Guidelines, bolstering IT security and IT governance, improving recovery from written-off accounts, and timely and accurate sharing of information with credit information companies were also discussed.

The meetings were also attended by Deputy Governors, M Rajeshwar Rao and Swaminathan J, along with a few senior officials of the RBI.

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