The Reserve Bank on Friday requested small finance banks (SBFs) to proceed to evolve in tune with the differentiated banking licence given to them with proportionate development of their capital base.
In an announcement, the RBI mentioned deputy governors M Okay Jain and M Rajeshwar Rao held dialogue with Managing Directors (MDs) and Chief Executive Officers (CEOs) of SFBs.
Earlier within the assembly with heads of SFBs held in August final yr, evolution of their enterprise mannequin and the necessity for enhancing board oversight and professionalism, enhancing assurance capabilities and augmenting IT infrastructure, making an allowance for the stress build-up because of COVID-19 together with requisite mitigation measures, have been mentioned.
“In the meeting held today (Friday), 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,” RBI mentioned.
SFBs, the central financial institution mentioned, have been suggested to proceed to evolve in tune with the differentiated banking licence given to them with proportionate development of their capital base.
Among different issues, asset high quality issues together with viable portfolio combine and additional strengthening of customer support and grievance redressal framework with commensurate IT resilience have been additionally mentioned.
The Reserve Bank took observe of the options and inputs from the contributors, the assertion mentioned.
Executive administrators of Supervision and Regulation and different senior officers of the Reserve Bank additionally attended the assembly.
Source: www.financialexpress.com”