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The Governor of the Reserve Bank of India (RBI), Shri Shaktikanta Das, today held meetings with the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks in Mumbai. The meetings were attended by Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J., along with Executive Directors in charge of Regulation and Supervision. The previous such meeting was held on February 14, 2024.
During his opening remarks, the Governor highlighted the continued improvement in banks’ asset quality, loan provisioning, capital adequacy, and profitability, reflecting the overall strength and resilience of the banking sector. At the same time, he stressed the need to further strengthen governance standards, risk management practices, and compliance culture within banks.
The Governor also emphasized the importance of robust cybersecurity measures, effective management of third-party risks, and prevention of digital frauds, including measures against ‘mule accounts’. He urged banks to intensify customer awareness and education initiatives to safeguard users against online financial fraud.
Key topics discussed during the meeting included:
Persisting gap between credit and deposit growth
Liquidity risk management and Asset-Liability Management (ALM) issues
Trends in unsecured retail lending
Cybersecurity, third-party risks, and digital frauds
Strengthening assurance and internal audit functions
Credit flows to Micro, Small and Medium Enterprises (MSMEs)
Increasing the use of the Indian Rupee for cross-border transactions
Participation in RBI-led innovation initiatives
The RBI’s engagement with the senior management of banks is aimed at ensuring financial stability, operational resilience, and customer protection, while promoting innovation and efficient banking practices.
[RBI]