Search
RBI urges Urban cooperative banks to strengthen governance
August 31, 2023
The Reserve Bank of India (RBI) on August 30 urged directors of urban cooperative banks (UCBs) to further strengthen their governance practices, especially the three supporting pillars of compliance, risk management and internal audit.
“The quality of governance was the most important aspect in ensuring stability of individual banks and the directors of UCBs are urged to further strengthen governance practices,” RBI Governor Shaktikanta Das said at a conference of directors on the boards of Tier 3 and 4 UCBs in Mumbai Zone.
On the functioning of boards, the governor emphasised five aspects – adequate skills and expertise of directors, constitution of a professional board of management, diversity and tenure of board members, transparent and participatory nature of board discussions, and effective functioning of board-level committees, the central bank said in a release.
The conference was also attended by deputy governors M Rajeshwar Rao and Swaminathan J, along with executive directors representing the RBI’s Departments of Supervision, Regulation and Enforcement, and other senior officials, according to the press release.
The governor also talked about the importance of the bank board’s involvement in upholding rigorous credit risk management including robust underwriting standards, effective post-sanction monitoring, timely recognition and mitigation of incipient stress, rigorous follow-up of large NPA borrowers for effective recovery, and maintaining adequate provisioning.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
