RBI puts bank boards on notice

The central bank has tightened supervision but governance challenges at banks remain

The conference room at the five-star hotel is packed with around 200 private bank directors, chairmen and CEOs (a bad case of concentration risk, you might think). The Reserve Bank of India governor arrives at 10 am on the dot. Thereafter, the RBI’s first-ever interaction with the boards of private banks, which took place late last month, proceeds with almost Republic Day parade-like precision.

The addresses by the governor and two deputy governors stick to the allotted time.  So do the presentations by chief general managers and the open house interaction with executive directors. The seating arrangements have been thought