We are dedicated to establishing a global model of risk-focused supervision, one that emphasizes strong risk discovery and compliance culture," said Reserve Bank of India (RBI) Deputy Governor Swaminathan J. He was speaking at the 'High-Level Policy Conference of Central Banks From the Global South' in Mumbai last week. And the statement was taken by a few bankers to mean that Mint Road's senior supervisory managers will proactively keep digging for signs of mess in the banks they are assigned to.
Swaminathan's portfolio includes the powerful Department of Supervision, and the RBI may well have signaled it is set to turn the governance knob higher.
Coming as it were after the high-profile second edition of its brass' interface with the boards of private banks (on November 18 in Mumbai) to reiterate the role of boards and independent directors (IDs).
And old peeves remain: boards are becoming "executive" in nature (with just about every other file being forwarded to it). IDs' remuneration continues to be poor compared to what's on offer in wider India Inc and a closer scrutiny of their roles has seen many turning down invites to such positions.
As for climate change and cyber security, it's tough to find people with experience to onboard; non-banks pay far more for such talent. A small pool of IDs has led to boards being packed with the retired - be they bankers, civil servants or those drawn from the RBI; many of whom may not be current with themes in banking and finance. In state-run banks, serving central bank officials on their boards is a clear case of conflict of interest.
More than a business card What makes a bank board job different from the same at a non-bank?
This story is from the December 02, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 02, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Jay Shah takes over as ICC chairman
Indian cricket administrator Jay Shah on Sunday took charge as the chairman of the International Cricket Council (ICC) with an immediate goal of ending the impasse surrounding the Champions Trophy and a broader vision of making cricket a commercially viable Olympic sport.
Nine states bet $18 bn on women's empowerment
Nine Indian states with ongoing or proposed cash transfer schemes for women have collectively allocated $18 billion in their 2024-25 Budget Estimates, amounting to 0.5 per cent of India's gross domestic product (GDP) for the same financial year, according to research by Goldman Sachs.
Every couple should have at least three kids, says RSS chief
Expressing concern over declining population growth, RSS chief Mohan Bhagwat on Sunday said India's Total Fertility Rate (TFR), the average number of children a woman gives birth to in her lifetime, should be at least 3, well above the present one of 2.1.
Painkillers, anti-infective drugs fail quality tests most in 2024: CDSCO
Painkillers, anti-infectives and medications for type-2 diabetes were among the class of drugs flagged as not of standard quality (NSQ) and spurious the most in 2024, according to data collated from drug alerts issued by the Central Drug Standards Control Organisation (CDSCO).
Pollution rises while funds gather dust
The National Clean Air Programme (NCAP), launched in 2019 to improve air quality in 131 cities, has shown limited progress as rising pollution levels and underutilisation of funds raise concerns about its effectiveness.
Robust taxes ease burden of freebies on states
The evolving dynamics of state-level politics in India highlight the increasing prominence of welfare schemes and subsidies as decisive factors in elections.
Monetary policy: Hobson's choice before RBI
This policy comes at a time when growth is slowing, inflation is still pretty high, and the rupee has started losing value against the dollar
CONSOLATION PRIZES
UN climate summit in Baku leaves the developing world with crumbs
SFBs: The canter on a chequered terrain
Segmental and geographical expansion, undergirded by strong and increasing presence in semi-urban and rural markets with large untapped potential, will help small finance banks (SFBs) clock robust 25-27 per cent growth in advances this financial year, just shy of 28 per cent in the previous year.
Now boarding
Governance premium is set to go up by many notches and banks will be put through the wringer, reports RAGHU MOHAN
