Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), held meetings with the Managing Directors and Chief Executive Officers (MD&CEOs) of public and select private sector banks in Mumbai. During the meetings, Governor Das urged banks to exercise additional caution and vigilance in light of various adverse global developments.
In his opening remarks, the Governor acknowledged the commendable performance of the Indian banking system in the face of challenging global circumstances. He emphasized the importance of banks remaining extra careful and vigilant to safeguard their operations and the interests of their customers.
According to a statement by the RBI, Governor Das specifically highlighted the significance of enhancing governance within banks and focusing on the tripod of banking stability, which encompasses compliance, risk management, and audit functions.
Key areas of discussion in the meetings included reinforcing credit underwriting standards, enhancing monitoring of large exposures, improving recovery from written-off accounts, and ensuring the timely and accurate sharing of information with Credit Information Companies.
The meetings were attended by Deputy Governors M. Rajeshwar Rao and Shri Swaminathan J., along with several senior officials from the RBI. The engagement provided an important platform for dialogue and collaboration between the central bank and the banking sector to address emerging challenges and strengthen the overall stability of the Indian financial system.
In a rapidly changing global environment, the RBI’s call for heightened vigilance underscores the importance of banks adopting robust risk management practices and maintaining strong governance frameworks to navigate uncertainties effectively.