RBI Deputy Governors discuss regulatory issues with CEOs of small finance banks

Mumbai (Maharashtra) [India], June 10 (ANI): The Reserve Bank of India’s (RBI) deputy governors, M Rajeshwar Rao and M K Jain on Friday met with managing directors (MDs) and chief executive officers (CEOs) of small finance banks to discuss governance and regulatory issues.
M K Jain and M Rajeshwar Rao, Deputy Governors, Reserve Bank of India, held discussions with Managing Directors (MDs) and Chief Executive Officers (CEOs) of small finance banks (SFBs) on June 10, 2022. Executive Directors of Supervision and Regulation and other senior officials of the Reserve Bank also attended the meeting, the Reserve Bank of India said in a statement.
“In the meeting held today, the emphasis on according due importance to these themes for sustainable growth of SFBs, particularly their business model and governance, was reiterated after taking stock of the developments in the sector,” the RBI said.
Small finance banks were advised to continue to evolve in tune with the differentiated banking license given to them with proportionate growth in their capital base.
Among other matters, asset quality concerns including viable portfolio mix and further strengthening of customer service and grievance redressal framework with commensurate IT resilience were also discussed. The Reserve Bank took note of the suggestions and inputs from the participants.
Earlier in the meeting with heads of SFBs held on August 27, 2021, the evolution of their business model and the need for enhancing Board oversight and professionalism, improving assurance functions and augmenting IT infrastructure, taking into account the stress build-up due to COVID-19 along with requisite mitigation measures, were discussed. (ANI)