BackRBI asks banks to remain extra careful and vigilant, focus on governance
Reserve Bank Governor Shaktikanta Das Tuesday asked Indian banks to be extra careful and vigilant in view of the adverse global developments while strengthening corporate governance
PremiumReserve Bank Governor Shaktikanta Das Tuesday asked Indian banks to be extra careful and vigilant in view of the adverse global developments while strengthening corporate governance.
The governor held meetings with the MD and CEOs of public sector banks and select private sector banks in Mumbai. The meetings were also attended by Deputy Governors, M. Rajeshwar Rao and Shri Swaminathan J., along with senior officials of the central banks.
Das in his introductory remarks, while noting the good performance of the Indian banking system despite various adverse global developments, stressed that it is in times like these, banks need to be extra careful and vigilant, the RBI said in a statement.
"The Governor also emphasised the need for MD & CEOs to pay special attention to strengthening the governance in the banks and focus on the tripod of banking stability consisting of compliance, risk management and audit functions," the statement read.
The issues relating to strengthening of credit underwriting standards, monitoring of large exposures, implementation of External Benchmark Linked Rate (EBLR) Guidelines, bolstering IT security and IT governance, improving recovery from written-off accounts, and timely and accurate sharing of information with credit information companies were also discussed during the meeting.
Separately, the central bank today cancelled the banking licence of “Harihareshwar Sahakari Bank Ltd., Wai, Satara" and “Sri Sharada Mahila Co-operative Bank Ltd., Tumkur, Karnataka" for not compliance with the certain provisions of the Banking Regulation Act, 1949. Consequently, the banks cease to carry on banking business, with effect from the close of business on July 11, 2023.
The Commissioner for Co-operation and Registrar of Cooperative Societies, Maharashtra and Registrar of Cooperative Societies, Karnataka have been requested to issue an order for winding up the banks and appoint a liquidator for the same, the Reserve Bank said in a separate statement.
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