RBI holds talks with SFBs on enhanced board oversight, risk management

Analysts say while most SFBs set up robust networks the past 3-4 years, they were hit badly by Covid-19 pandemic, and will need time to ramp up CASA deposits and secured credit

With the aim of making small finance banks (SFBs) more resilient, the Reserve Bank of India today held talks with chief executives of SFBs to increase board oversight and improve risk management and make IT setup robust.

The discussions were held on a range of themes such as evolution of the business models of SFBs, enhancing Board oversight and professionalism, RBI said in statement.

The issue of further improvement in assurance functions--compliance; internal control and risk management--also figured in discussions. They also deliberated on building their IT infrastructure both for enhanced customer experience and for cyber security resilience.

The stress