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The Governor of the Reserve Bank of India (RBI) held discussions with the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks on February 14, 2024, in Mumbai. These meetings form a part of RBI’s ongoing engagement with senior management of regulated and supervised entities. Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J., along with Executive Directors overseeing regulation and supervision, were also present. The last such interaction took place on July 11, 2023.
During the meeting, the Governor commended the banking sector for its strong financial performance and the overall resilience of the domestic financial system. Despite improvements, he emphasized that banks must remain vigilant and avoid complacency, particularly regarding emerging risks. He drew attention to critical areas such as business model sustainability, rapid growth in personal loans, compliance with co-lending norms, exposure to NBFCs, liquidity risk practices, cyber and IT security, operational resilience, and rising incidents of digital fraud. Strengthening internal credit rating frameworks and ensuring robust grievance redressal systems were highlighted as essential to safeguarding customer interests.
The Governor also encouraged banks to deepen their involvement in RBI’s FinTech initiatives and expand the reach and effectiveness of Digital Banking Units (DBUs), underscoring the central role of innovation in enhancing customer experience and financial inclusion.
[RBI]