In a May speech, an RBI deputy governor recommended that Indian bank boards address governance issues, including risk management and customer and market conduct.
At a May conference of state-run and private bank directors, M Rajeshwar Rao advised boards to create management goals and require risk management reports.
The speech was posted on the Central Bank website Monday.
RBI Governor Shaktikanta Das and Deputy Governor M.K. Jain urged banks to comply and rule in the same conference.
Following the US bank crises, the RBI has urged banks to tighten governance to avoid financial instability.
“Boards should ensure that management is transparent about the banks’ financial performance/statements and risk management practices so that trust with stakeholders is built and investors are able to assess the various risks associated with a bank,” Rao said.
