Apt time to address governance gaps in banks, says RBI deputy governor

by IANS |

New Delhi, June 5 (IANS) Time is perhaps right to address gaps in governance frameworks of banks, a top RBI official has said, amid reports of lapses by various banks, which have invited action by the central bank.

"The banking sector in India at this juncture is sound, resilient, and financially healthy. So, the time is perhaps right to improve the plumbing by addressing the gaps in governance frameworks, assurance functions and strategise for better times ahead," RBI's deputy governor Rajeshwar Rao said.

He was addressing the conference of directors of banks organised by the RBI for public sector banks, recently.

Rao's comments have come just days after RBI governor Shaktikanta Das had said that the central bank had found some gaps in banks' corporate governance despite issuing guidelines on the matter.

He had advised that banks' boards and management should not allow such gaps to creep in.

These views by the central bank's top brass have come when quite a few governance lapses have been reported by various banks, attracting action by the RBI.

Rao further said in his address that bank boards often do not pay attention to matters related to conduct.

Pointing out that customer service, customer conduct and ethical employee behaviour are key in banks, Rao said banks' boards should pay close attention to these aspects.

"Good or rather best practices in these areas are the key soft pillars which build the edifice of a successful financial institution, more so in these challenging times," he said.

Latest News
Trinamool moves ECI against Abhijit Gangopadhyay's remarks on Mamata Banerjee Fri, May 17, 2024, 05:19 PM
Govt-run ONDC facilitates 7.22 mn transactions in April, onboards over 5 lakh sellers Fri, May 17, 2024, 05:17 PM
Explained: What is Hepatitis A that is causing an outbreak in Kerala Fri, May 17, 2024, 05:16 PM
JSW Steel posts 64 pc decline in Q4 net profit at Rs 1,299 crore Fri, May 17, 2024, 05:15 PM
Man, who set afire French synagogue, neutralised Fri, May 17, 2024, 05:13 PM
Friend taken into custody after Kerala bridegroom accused of domestic violence flies out Fri, May 17, 2024, 04:50 PM
Russia reports over 100 Ukrainian drone attacks Fri, May 17, 2024, 04:11 PM
Two fake call centres busted in Punjab, 155 employees held Fri, May 17, 2024, 04:09 PM
Olympic selection trials: Sift, Aishwary in lead as top two in 3P events identified Fri, May 17, 2024, 04:00 PM
US Air Force blames power loss, weather for F-16 crash in South Korea in May 2023 Fri, May 17, 2024, 03:56 PM
Trial of Syrian government militia's head begins in Germany's Hamburg Fri, May 17, 2024, 03:54 PM
Supreme Court gives no interim relief to ex-Jharkhand CM Hemant Soren Fri, May 17, 2024, 03:42 PM
Sparks fly as BJP, Cong, SP big guns roar in Amethi Fri, May 17, 2024, 03:34 PM
North Korea fires short-range ballistic missiles toward East Sea: JCS Fri, May 17, 2024, 03:31 PM
Karnataka Home Minister orders probe into 'police negligence' in Anjali murder case Fri, May 17, 2024, 02:55 PM