REGULATING COMMERCIAL BANKING

Banks are fundamental to the nation's financial system. The central bank has a critical role to play in ensuring the safety and soundness of the banking system-and in maintaining financial stability and public confidence in this system.


PDF document (310 kb)
Date : Jun 11, 2020
RBI releases Discussion Paper on ‘Governance in Commercial Banks in India’

The Reserve Bank of India today released on its website a Discussion Paper on ‘Governance in Commercial Banks in India’ for public comments.

2. The objective of the discussion paper is to align the current regulatory framework with global best practices while being mindful of the context of domestic financial system. Accordingly, some of the major highlights of the paper are as follows:

i. Empower the Board of Directors to

  1. set the culture and values of the organisation;

  2. recognise and manage conflicts of interest;

  3. set the appetite for risk and manage risks within the appetite;

  4. improve the supervisory oversight of senior management;

ii. Empower the assurance functions through various interventions;

iii. Achieve clear division of responsibilities between the Board and the management; and

iv. Encourage the separation of ownership from management.

3. Improving the quality of governance in financial intermediaries is an important determinant of efficiency in allocation of resources, protection of depositors’ interest and maintaining financial stability. In this endeavour, the paper has been drafted to encourage stakeholder feedback.

4. Suggestions and comments on the discussion paper may be sent by email latest by July 15, 2020.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2019-2020/2485


2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Archives
Top