RBI deepens scrutiny of bank board meetings and governance practices

The central bank's message (through SSMs) is clear: Mere box-ticking will not suffice

The Reserve Bank of India (RBI) is taking a much closer look at bank board deliberations and may issue directives to improve governance practices.

 

Senior officials in both state-run and private banks told Business Standard that following the developments at IndusInd Bank, the central bank’s senior supervisory managers (SSMs) were asking questions on the agenda presented to boards, the time spent discussing specific items, and observations made by independent directors. 

 

Variances in board meeting audio recordings, if any, and the minutes presented are also being looked into. In addition, the RBI is examining the role of board sub-committees, the quality