RBI top brass to meet board members of public sector banks on governance and ethics today

Reserve Bank of India (RBI) Governor Shaktikanta Das will meet the board of directors of all public sector banks on Monday to discuss issues related to governance and ethics.

The Department of Supervision of the Reserve Bank of India will organise the one-day meeting in Delhi, PTI reported.

The meeting will be addressed by the RBI governor, deputy governors, executive directors from its Department of Regulation as well as Supervision.

Governor Shaktikanta Das will address the whole time and independent directors of the PSU banks on issues related to governance, ethics, and the role of the boards in assurance functionalities of the banks, besides highlighting the supervisory expectations.

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The meeting is set to be an interactive one where directors, including the bank chairman, and nominee directors both from the central bank and the government, will be invited to interact with the entire RBI top brass.

Meanwhile, the government has introduced several reforms in governance and provided more autonomy to the board of public sector banks in recent times. These reforms include an independent professional body for selection, objective and transparent selection and allotment on the basis of merit-cum-performance.

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The government in 2016 had also set up the Banks Board Bureau (BBB) for the appointment of whole-time directors in public sector banks and financial institutions. It was transformed into Financial Services Institutions Bureau (FSIB) last year.

The meeting also comes just after the central bank on May 19 decided to withdraw the ₹2,000 denomination banknotes from circulation and gave citizens to deposit or exchange these notes at banks till September 31, 2023.