“While such practices may yield short-term gains, they ultimately expose the bank to significant long-term risks, including reputational damage, supervisory scrutiny, and financial penalties,” Shaktikanta Das mentioned in a keynote cope with on the Convention of Administrators of Non-public Sector Banks right here.
| Picture Credit score: Thulasi Kakkat
RBI Governor Shaktikanta Das on Monday (November 18, 2024) requested reserve forums to fortify inner governance framework to curb unethical practices, equivalent to mis-selling of goods or opening of accounts with out right kind KYC verification.
Mr. Das additionally mentioned that the incentives for reserve personnel will have to be sparsely structured in order to not inspire them to delight in unethical practices.
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“While such practices may yield short-term gains, they ultimately expose the bank to significant long-term risks, including reputational damage, supervisory scrutiny, and financial penalties,” he said in a keynote address at the Conference of Directors of Private Sector Banks here.
Mr. Das further said that the Indian banking sector is transitioning through a time which is replete with opportunities as well as risks and challenges.
“The banking sector residue robust and solid. All of the monetary signs have stepped forward since we met in Might latter future, reflecting the efforts of the diverse contributors of the banking sector, together with their control and forums,” he said.
To keep the resilience of the banking system intact, the governor emphasised that strong fundamentals ought to be leveraged to reinforce and fortify the defences.
RBI Governor Shaktikanta Das to bank boards: Strengthen framework to curb unethical practices
“Excellent occasions, upcoming all, are the most productive occasions to improve resilience and develop sustainably,” he added. Mr. Das additionally mentioned that within the all of a sudden evolving and technology-driven circumstance, organisations face important demanding situations and dangers.
Elements like technological developments, the stand of new-age fintech entities, third-party dependencies and condition trade are reshaping the industrial terrain, he added.
Amid those moving tides, reserve forums will have to handover as a lighthouse for lenders and handover stable steerage to assistance navigate those demanding situations and steer in opposition to cover and wealthy shores, he mentioned.
Printed – November 18, 2024 03:17 pm IST
