Reserve Bank of India Governor, Shaktikanta Das, met with the managing directors and chief executive officers of public sector banks and some private sector bank on Wednesday.
Several issues related to persisting gap between credit and deposit growth, liquidity risk management, cybersecurity, digital frauds and credit flows to micro, small and medium enterprises were discussed at length in the meeting, the central bank said in a press release.
Strengthening of assurance functions at banks, increasing the use of Indian rupee for cross-border transactions, and participation from banks in innovation initiatives of RBI were also discussed.
These meetings were a part of RBI's continuous engagement with senior management of its entities that fall under RBI's purview. The last such meeting was held on Feb. 14, RBI said. Apart from Das, RBI Deputy Governors M. Rajeshwar Rao and Swaminathan J were also present at the meetings, along with top officials from RBI's department of regulation and supervision functions.
In his opening remarks, Das highlighted "continued improvement in banks' asset quality, loan provisioning, capital adequacy, and profitability".
He acknowledged higher resilience and strength of the banking sector, while underlining the importance of stronger governance standards, risk management practices and compliance culture at banks. He also emphasised the need for banks to ensure robust cybersecurity controls and effectively manage third-party risks, the central bank said.
The governor also urged banks to bolster their efforts against mule accounts, and ramp up customer awareness and education initiatives, among other measures, to prevent digital frauds.
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