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RBI to brainstorm with bank directors on governance, risk issues on Monday

Topics would cover supervision, enhancing governance and enforcing regulations; role of board in governance and RBI's expectations on governance by banks are likely to figure in discussions

Reserve Bank of India, RBI

Photo: Bloomberg

Abhijit Lele Mumbai

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The Reserve Bank of India will hold detailed interactions with directors on the board of public sector banks in the national capital on Monday, on topics covering supervision, enhancing governance and enforcement of regulations.

The theme of the one-day interaction is 'Governance in Banks – Driving Sustainable Growth and Stability'. The sessions would cover areas such as assurance and governance, ethics, operational risks, including Know Your Customer (KYC) norms, and data analytics.  

RBI will hold similar interactions with directors of private banks on May 29 in Mumbai, a senior official with a private bank said.

Besides MD & CEOs, executive directors, government and RBI nominated directors etc are expected to attend these interactions.

RBI top brass such as the governor, deputy governors, executive directors and chief general managers in charge of supervision, regulation and enforcement would attend and make presentations.

Banking sources said the role of the board in governance and RBI's expectations on governance by banks are likely to figure in discussions.

A senior public sector banker said the thrust of the one-day workshop is expected to be on informal interactions. RBI may share with the directors the inferences and observations emerging from the inspection of banks. These may be flagged for boards to monitor in respective banks to improve governance and conduct periodic review.

There has been improvement in the balance sheet profile with reduction in stressed assets and robust growth in net Interest Income (NII) and healthy capital adequacy levels. Along with it a lot of work has been done to improve governance and working at PSBs through Enhanced Access and Service Excellence (EASE) program for the last four years, PSB executives pointed out.

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First Published: May 21 2023 | 6:10 PM IST

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