RBI Governor says despite guidelines issued, gaps noticed in the governance of some banks

Addressing bankers on the occasion, Das said that it is the joint responsibility of the chairmen of the banks' board and the directors to ensure robust governance

PGurus Newsdesk

May 29, 2023

Addressing bankers on the occasion, Das said that it is the joint responsibility of the chairmen of the banks' board and the directors to ensure robust governance

RBI Governor flags issues with the governance of certain banks

On Monday Reserve Bank of India (RBI) Governor Shaktikanta Das said the central bank has noticed gaps in the governance of some banks, even though it has issued guidelines for the same.

He was speaking at a conference of banks’ directors organized by the RBI bank. “It is necessary that boards and managements do not allow such gaps to creep in,” Das said.

“While these gaps have been mitigated, it is necessary that boards and the managements do not allow such gaps to creep in,” Das said in his speech.

The RBI governor further said that it is the joint responsibility of the chairmen of the banks’ board and the directors to ensure robust governance. He added that it is important that the directors should keep themselves updated with the bank’s internal environment as well as the external factors that impact their functioning.

[With Inputs from IANS]

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